June 17, 2009
SO DID WE GET THE HOUSING BUBBLE BECAUSE BERNANKE LISTENED TO THIS IN 2002 FROM PAUL KRUGMAN?
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, we got the housing bubble, anyway.