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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: combjelly who wrote (924784)	3/6/2016 5:25:59 PM
From: Broken_Clock	Read Replies (2) \| Respond to of 1577083

He sure moves the left when he writes. Show where, in 2001, he warned against a housing bubble. I've given you 8 direct quotes where he literally pleaded with the Fed to blow one up. Krugman is a two faced wall st. shill for the elite. ++++++ "In 2002, economist Paul Krugman, who would go on to win a Nobel Prize in 2008, advised that the Fed "create a housing bubble to replace the Nasdaq bubble." In his view, this would allow "soaring household spending to offset moribund business investment." (Krugman began warning that the housing bubble was dangerous in 2005.)" http://www.huffingtonpost.com/2013/04/19/paul-krugman_0_n_3118069.html

To: combjelly who wrote (924784)	3/6/2016 5:31:53 PM
From: Broken_Clock	Respond to of 1577083

http://tomwoods.com/blog/paul-krugman-the-fed-didnt-create-the-housing-bubble/ On that count, from my book, Ron Paul vs. Paul Krugman (http://www.amazon.com/Ron-Paul-vs-Krugman-Keynesian/dp/1470070723) Krugman again argued in the New York Review of Books in September 2010 that the Fed had had no choice but to lower interest rates following the collapse of the dot-com bubble. “It’s hard to see,” he wrote, “even in retrospect, how the Fed could have justified not keeping rates low for an extended period.” However, now his argument was that “it would be wrong to attribute the real estate bubble wholly, or even in large part, to misguided monetary policy.” Yet how could Krugman reconcile his argument here that the Fed was not “wholly, or even in large part” responsible for creating the housing bubble with his earlier arguments that the Fed should lower interest rates to spur investment in housing? How could he reconcile this argument with his earlier statement that “Millions of Americans have decided that low interest rates offer a good opportunity to refinance their homes or buy new ones” (May 2, 2001)? Or with his observation that “those 11 interest rate cuts in 2001 fueled a boom both in housing purchases and in mortgage refinancing” (October 1, 2002)? Or with his acknowledgment that it had been “the Fed’s dramatic interest rate cuts” that had “helped keep housing strong” (December 28, 2001)? Or his statement, “Repeated interest rate cuts encouraged families to buy new houses and refinance their mortgages” (December 22, 2002)? Or his remark that “Mortgage rates did indeed fall briefly to historic lows, extending the home-buying and refinancing boom that has helped keep the economy’s head above water” (July 25, 2003)? Or, “Low interest rates … have been crucial to America’s housing boom” (May 20, 2005)? Or, “interest rate cuts led to soaring home prices, which led in turn not just to a construction boom but to high consumer spending, because homeowners used mortgage refinancing to go deeper into debt”(May 25, 2005)? Or, “A snarky but accurate description of monetary policy over the past five years is that the Federal Reserve successfully replaced the technology bubble with a housing bubble” (August 7, 2006)? Or, “Back in 2002 and 2003, low interest rates made buying a house look like a very good deal. As people piled into housing, however, prices rose—and people began assuming that they would keep on rising. So the boom fed on itself” (July 27, 2007)? What can explain Krugman’s self-contradictions? When he thought the housing bubble was a good thing, the road to recovery, he was all for it, lavishing the Fed with praise for single-handedly rescuing the economy from the much more painful recession that otherwise would have occurred without it. Once the devastating consequences of the housing bubble became clear, however, he changed his story, denying that he had ever called for a bubble and even denying that the Fed was responsible for having created it.