View from the Center and Left Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : View from the Center and Left

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: JohnM who wrote (188970)	5/11/2012 10:45:52 AM
From: Steve Lokness	Read Replies (2) of 542007

Interesting piece by Krugman, thanks for posting John. For Krugman to argue that "job losses since the crisis began haven't been in industries that arguably got too big in the bubble years" and include housing in this list is just, .......well nuts. Housing starts that were running at 1.5 million in 2007 fell to less than 500K by early 2009. To think you can cut housing by a million units when the total is only 1.5 million and that not have a HUGE impact on unemployment numbers is just .....well nuts! The thing with housing John is that it effects so many other industries. Every item going into a house is manufactured generally in this country and the multiplier effect is huge. But the housing issue doesn't end there; houses because of their inflated value also became "private" banks where people could dip in to what they thought was their saving account and then use that money to buy other items - maybe a new yacht or hot tub or new addition on their home. (That new addition is NOT a housing start). So when that all came crashing down people lost their jobs by the millions. That is NOT coming back anytime soon - and all the stimulating in the world to try to get it to return is silly. Why? Demand. We built too many homes and now must work through the decades worth of inventory. Krugman is dead wrong on this thinking here and because he is it throws his entire ideology into question. What did Roosevelt do? ycharts.com <<<<<article by Raghuram Rajan of the University of Chicago asserts that the problem is the need to move workers out of the “bloated” housing, finance and government sectors.Actually, government employment per capita has been more or less flat for decades, but never mind — the main point is that contrary to what such stories suggest, job losses since the crisis began haven’t mainly been in industries that arguably got too big in the bubble years. >>>>>

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next