More Bearer Bond News
Oh boy, now the Italians want the SEC to make a ruling on the bonds authenticity. Market Skeptics has the goods.
Krugman Is, and Always was a Keynesian Clown
Mish delivers the knockout blow with this story. Dead to rights line from Krugman himself in August 2002:
The basic point is that the recession of 2001 wasn't a typical postwar slump, brought on when an inflation-fighting Fed raises interest rates and easily ended by a snapback in housing and consumer spending when the Fed brings rates back down again. This was a prewar-style recession, a morning after brought on by irrational exuberance. 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.
Game over. The housing bubble was both done on purpose and finally exposes Keynesian economics for what it is: Useless and Dangerous
A good friend of Economic Disconnect has plenty of content up tonight, so why not check out Illusion of Prosperity?
Another new stop for me is Accrued Interest.
And of course, if you have not checked out The Automatic Earth, well, you are really missing out.
Have a good night.