Saturday, May 7, 2011

Best Krugman Quote Ever

"To fight this recession the Fed needs more than a snapback; it needs soaring household spending to offset moribund business investment. And to do that, as Paul McCulley of Pimco put it, Alan Greenspan needs to create a housing bubble to replace the Nasdaq bubble." - Paul Krugman, August 2002
The department of poetic justice should make him wear that as a sign around his neck. How can we take anything he says about the aftermath of the housing bubble seriously?

His current, money-printing, Keynesian view is essentially that Ben Bernanke should create a commodities bubble to replace the housing bubble.


Stagflationary Mark said...

Fantastic quote!

Why can't more people understand this?

Stagflationary Mark said...

I referenced this quote in my latest post.

Real Wage and Salary Disbursements Per Capita

CP said...

I always forget, too, about the Nobel prize!