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Politics : View from the Center and Left

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To: Dale Baker who wrote (15889)	4/4/2006 12:58:55 PM
From: TimF	Read Replies (1) of 541900

If you though the author was expressing the situation involving the trade deficit as a desirable thing I think you misread the article. In a certain technical sense he (correctly) asserts that the trade deficit is desirable, but his point is that the low savings rate that is at the root of the trade deficit is not desirable. He doesn't support Krugman's impending hard landing scenario, but at the same time he disagrees with Bernanke's “What-me-worry?” hypothesis. Tim

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