User:Nick Gardner /Sandbox: Difference between revisions
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'''economics''' | '''economics''' | ||
We are buying a lot of housing at rising prices, but home ownership has become a vehicle for borrowing as much as a source of financial security. As a nation we are consuming and investing about 6 percent more than we are producing.....what holds it all together is a massive and growing flow of capital from abroa...this seemingly comfortable pattern can't go on indefinitely... | |||
I don't know whether change will come with a bang or a whimper, whether sooner or later. But as things stand, it is more likely than not that it will be financial crises rather than policy foresight that will force the change. | |||
<ref>[http://www.washingtonpost.com/wp-dyn/articles/A38725-2005Apr8.html Paul A. Volcker: ''An Economy On Thin Ice'', Washington Post, April 10, 2005]</ref> | |||
House prices have risen by nearly 25 percent over the past two years. Although | |||
speculative activity has increased in some areas, at a national level these price increases | |||
largely reflect strong economic fundamentals, including robust growth in jobs and | |||
incomes, low mortgage rates, steady rates of household formation, and factors that limit | |||
the expansion of housing supply in some areas. House prices are unlikely to continue | |||
rising at current rates. | |||
<ref>[http://www.house.gov/jec/hearings/testimony/109/10-20-05bernanke.pdf Ben Bernanke: ''The Economic Outlook'', Testimony before the Joint Economic Committee, October 20, 2005]<ref> | |||
(Testimony of Dr. Alan Greenspan before the Committee of Government Oversight and Reform October 23, 2008[http://clipsandcomment.com/wp-content/uploads/2008/10/greenspan-testimony-20081023.pdf]) | (Testimony of Dr. Alan Greenspan before the Committee of Government Oversight and Reform October 23, 2008[http://clipsandcomment.com/wp-content/uploads/2008/10/greenspan-testimony-20081023.pdf]) | ||
Revision as of 10:21, 20 April 2010
Links for Great Recession/Diagnosis and Remedies
economics
We are buying a lot of housing at rising prices, but home ownership has become a vehicle for borrowing as much as a source of financial security. As a nation we are consuming and investing about 6 percent more than we are producing.....what holds it all together is a massive and growing flow of capital from abroa...this seemingly comfortable pattern can't go on indefinitely... I don't know whether change will come with a bang or a whimper, whether sooner or later. But as things stand, it is more likely than not that it will be financial crises rather than policy foresight that will force the change.
House prices have risen by nearly 25 percent over the past two years. Although
speculative activity has increased in some areas, at a national level these price increases
largely reflect strong economic fundamentals, including robust growth in jobs and
incomes, low mortgage rates, steady rates of household formation, and factors that limit
the expansion of housing supply in some areas. House prices are unlikely to continue
rising at current rates.
Cite error: Closing </ref> missing for <ref> tag
Krugman
on why [2]
By PAUL KRUGMAN
Published: September 2, 2009
Flanders
new clothes [2]
A busted flush? [3]
NYT on debate[4]
Debate Transcript [3]
Tett
Mckenzie on Tett [5]
- (Source: Martin Wolf: Fixing Global Finance, page 11, Yale University Press, 2009. )
Skeleton
Diagnosis > remedies
Failure > conduct / institutions / understanding
Conduct > politics / conduct of monetary policy / regulators / bankers / credit rating agencies / economists
Institutions > monetary policy / regulation /
Understanding > financial economics /economic philosophy