Keynesians: Fight the collapse of the bubbles by creating bigger bubbles

In 2002,┬áPaul Krugman made his infamous statement: 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. Krugman, of course,┬álater … Continue reading Keynesians: Fight the collapse of the bubbles by creating bigger bubbles