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.
Well, Krugman got his housing bubble, and we all know how it worked out. Perhaps we should think twice before heeding this guy’s advice in the future.
(Via the Corner.)
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