Krugman heralds start of next depression

[AK]

[quote=Rich Toscano]That’s my issue with Krugman et al’s framework… the unquestioned assumption that the world will forever keep buying all the super-low rate debt we cram down their collective throat without ever, at any point, stopping to question how we will pay it all back.[/quote]

I do hope the powers that be are rolling over short-term Treasuries into 10- and 30-year notes … or yeah, we’re Greeced.

[AK]

From some guy at the Fed via CR:

Subprime mortgages were not at the core of the global crisis; they were only indicative of the dramatic mispricing of virtually every asset everywhere in the world.

CR cites this as proof that “we’re all subprime now!” This is true … but it also suggests that “we’re all Japan now!”

Two decades of stimulus and deficit spending haven’t exactly done wonders for Japan. I don’t know which approach, austerity or heroic stimulus, will give the best results in the long run … but I do wonder why anyone could reasonably expect short-term economic growth in Ireland, Greece, Spain, the U.S., or just about any country that benefited from the massive economic distortions of the bubble era.

Well, maybe Malawi. I’ve read about the success of their subsidized fertilizer program.

[AK]

From some guy at the Fed via CR:

Subprime mortgages were not at the core of the global crisis; they were only indicative of the dramatic mispricing of virtually every asset everywhere in the world.

CR cites this as proof that “we’re all subprime now!” This is true … but it also suggests that “we’re all Japan now!”

Two decades of stimulus and deficit spending haven’t exactly done wonders for Japan. I don’t know which approach, austerity or heroic stimulus, will give the best results in the long run … but I do wonder why anyone could reasonably expect short-term economic growth in Ireland, Greece, Spain, the U.S., or just about any country that benefited from the massive economic distortions of the bubble era.

Well, maybe Malawi. I’ve read about the success of their subsidized fertilizer program.

[AK]

From some guy at the Fed via CR:

Subprime mortgages were not at the core of the global crisis; they were only indicative of the dramatic mispricing of virtually every asset everywhere in the world.

CR cites this as proof that “we’re all subprime now!” This is true … but it also suggests that “we’re all Japan now!”

Two decades of stimulus and deficit spending haven’t exactly done wonders for Japan. I don’t know which approach, austerity or heroic stimulus, will give the best results in the long run … but I do wonder why anyone could reasonably expect short-term economic growth in Ireland, Greece, Spain, the U.S., or just about any country that benefited from the massive economic distortions of the bubble era.

Well, maybe Malawi. I’ve read about the success of their subsidized fertilizer program.

[AK]

From some guy at the Fed via CR:

Subprime mortgages were not at the core of the global crisis; they were only indicative of the dramatic mispricing of virtually every asset everywhere in the world.

CR cites this as proof that “we’re all subprime now!” This is true … but it also suggests that “we’re all Japan now!”

Two decades of stimulus and deficit spending haven’t exactly done wonders for Japan. I don’t know which approach, austerity or heroic stimulus, will give the best results in the long run … but I do wonder why anyone could reasonably expect short-term economic growth in Ireland, Greece, Spain, the U.S., or just about any country that benefited from the massive economic distortions of the bubble era.

Well, maybe Malawi. I’ve read about the success of their subsidized fertilizer program.

[AK]

From some guy at the Fed via CR:

Subprime mortgages were not at the core of the global crisis; they were only indicative of the dramatic mispricing of virtually every asset everywhere in the world.

CR cites this as proof that “we’re all subprime now!” This is true … but it also suggests that “we’re all Japan now!”

Two decades of stimulus and deficit spending haven’t exactly done wonders for Japan. I don’t know which approach, austerity or heroic stimulus, will give the best results in the long run … but I do wonder why anyone could reasonably expect short-term economic growth in Ireland, Greece, Spain, the U.S., or just about any country that benefited from the massive economic distortions of the bubble era.

Well, maybe Malawi. I’ve read about the success of their subsidized fertilizer program.

[Rich Toscano]

[quote=AK]
I do hope the powers that be are rolling over short-term Treasuries into 10- and 30-year notes … or yeah, we’re Greeced.[/quote]

Nope… you are right, that would be the smart move… but avg maturity is less than 5 years.

[Rich Toscano]

[quote=AK]
I do hope the powers that be are rolling over short-term Treasuries into 10- and 30-year notes … or yeah, we’re Greeced.[/quote]

Nope… you are right, that would be the smart move… but avg maturity is less than 5 years.

[Rich Toscano]

[quote=AK]
I do hope the powers that be are rolling over short-term Treasuries into 10- and 30-year notes … or yeah, we’re Greeced.[/quote]

Nope… you are right, that would be the smart move… but avg maturity is less than 5 years.

[Rich Toscano]

[quote=AK]
I do hope the powers that be are rolling over short-term Treasuries into 10- and 30-year notes … or yeah, we’re Greeced.[/quote]

Nope… you are right, that would be the smart move… but avg maturity is less than 5 years.

[Rich Toscano]

[quote=AK]
I do hope the powers that be are rolling over short-term Treasuries into 10- and 30-year notes … or yeah, we’re Greeced.[/quote]

Nope… you are right, that would be the smart move… but avg maturity is less than 5 years.

[jeeman]

The only reason we had a surplus in 1998-2000 was because of massive capital gains tax revenues from the stock market bubble. When this went away, the deficits returned. Bush cut tax *rates*, but if you look at tax *revenue* charts, the revenues climbed after the rate cuts.

[jeeman]

The only reason we had a surplus in 1998-2000 was because of massive capital gains tax revenues from the stock market bubble. When this went away, the deficits returned. Bush cut tax *rates*, but if you look at tax *revenue* charts, the revenues climbed after the rate cuts.

[jeeman]

The only reason we had a surplus in 1998-2000 was because of massive capital gains tax revenues from the stock market bubble. When this went away, the deficits returned. Bush cut tax *rates*, but if you look at tax *revenue* charts, the revenues climbed after the rate cuts.

[jeeman]

The only reason we had a surplus in 1998-2000 was because of massive capital gains tax revenues from the stock market bubble. When this went away, the deficits returned. Bush cut tax *rates*, but if you look at tax *revenue* charts, the revenues climbed after the rate cuts.

[Author]

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