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Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: Steve Lokness who wrote (128142)	1/6/2010 2:32:56 PM
From: JohnM	Respond to of 542262

Thanks for the Krugman post, Steve. I gather that's from is NYTimes blog. His usual Times op ed columns are on Thursday. Just to show how much Krugman simply responds to concepts/ideas and doesn't mean those responses to be personal, you may know that he and Bernanke were not only colleagues at Princeton but I recall they were somewhat friends. So for Krugman, these sorts of comments are just business as usual. Nothing personal.

To: Steve Lokness who wrote (128142)	1/6/2010 2:42:16 PM
From: Steve Lokness	Respond to of 542262

Of course I get to comment too; In Flatland, a housing bubble can’t even get started So in case people miss the point, Krugman ala Keynesian denials is saying today that the bubble was not because of a monetary policy mistake(s) but because of zoning. So to his thinking and along the lines of Keynes, low interest was not the problem. Derivatives were not the problem. Messy sales of unqualified buyers was not the problem. The problem was zoning. Horse pucky! Krugman in his deniability found a city without zoning - Atlanta - and assumed that was the reason for a lack of a housing boom. Again, Horse pucky! Atlanta likely didn't have a housing boom because of its conservative southern nature. How about the deserts of Arizona and the sprawl of Phoenix? Fly into Phoenix and you see a city that seems to have no end. They had a housing bubble - one of the worst. Nice try Paul - but bubbles are not caused by zoning - they are caused by too easy money.