Skip to comments.Debt, Depression, DeMarco (Krugman hurl alert)
Posted on 08/06/2012 9:27:04 AM PDT by TurboZamboni
There has been plenty to criticize about President Obamas handling of the economy. Yet the overriding story of the past few years is not Mr. Obamas mistakes but the scorched-earth opposition of Republicans, who have done everything they can to get in his way and who now, having blocked the presidents policies, hope to win the White House by claiming that his policies have failed.
Many economists believe that the overhang of excess household debt, a legacy of the bubble years, is the biggest factor holding back economic recovery. Loosely speaking, excess debt has created a situation in which everyone is trying to spend less than their income. Since this is collectively impossible my spending is your income, and your spending is my income the result is a persistently depressed economy.
(Excerpt) Read more at nytimes.com ...
Regulator rejects plan from White House to forgive mortgage debt
I seriously question how this libtardidiot won a Nobel Prize....seriously! =.=
Paul, Zero tried spending our way out of recession, just as you suggested.
Yes, no wonder Kugman won that liberal economic prize.
If the family breadwinners lose their jobs it's time go go on a spending spree and use the CC checks (for a 5% fixed fee) to pay the minimum CC interest payments .
And take out new CCs where the interest rate is zero the first year and jumps 20% after that and run those up too.
As Krug points out : All that matters is now. Stimulus, cry.
Didnt Obama win a similar award for peace in the middle East?
Real wealth is what is left over when the bills are all paid, so Paul figures we can get there by not paying the bills. That might be better than paying banks to make more debt, while saving their corrupt arses, but none of it is as good as letting consequences do their job. Everyone has had a wild ride, a thrill per second, but now it’s time to get off, and stagger around until we get some balance back.
—As Krug points out : All that matters is now. Stimulus, cry.—
It’s why, in the mid to long run, PM’s are a no brainer.
Yeah, cultures that encourage saving over spending collapse every time. Just like China's consistent double-digit growth for the past 20 years. Just like America during the post-war boom.
Arguing with Krugman is so boring. He never gets anything right, and the holes are so huge that one never has any idea how he gets published in the first place.
If only this were true!
Paul Krugman got the Nobel Prize in economics for figuring out that, historically, industrialized capitalist countries trade heavy manufacturing goods and technology primarily with each other, rather than with economically underdeveloped countries.
What that has to do with deficit spending, I don’t know.
more like excess debt, above and beyond what any sane or rational person would accept in terms of *debt* [house, reliable transportation etc] has been promoted as the norm, and everyone sold a bill of goods that the 'FRee' stuff would continue to be crapped out of the unicorns azz indefinately...
evidently, weve come full circle to the necessity of running debt in our housholds, as the interest payments to the banks seem to be the stimulus needed today...i guess this means we can cut the welfare rolls, and issue CCs instead ???
This article is so full of garbage it is hard to know where to start. First, FN and FH insure 90% of new residential mortgages. They paticipate in HARP, which allows underwater, but current, homeowners to refinance, and HAMP which allows delinquent homeowners to have their mortgage payements reduced. FN and FH have lost $200 billion dollars. That is equal $2,000 for every single family in the country. So you and I already paid $2,000 each to bail out borrowers who bit off more real estate than they could chew. Second, all DeMarco said was that he did not support forgiving the principal on FNMA/FHLMC mortgages because IT WOULD ENCOURAGE HOMEOWNERS WHO WERE MAKING THEIR PAYMENTS ON TIME TO STRATEGICALLY DEFAULT in order to obtain a principal reduction (meaning a gift from you and me). Instead FN/FH use forbearance, where a portion of principal is deferred, without interest, and made payable at the maturity date of the loan. Paul Krugman is truly the biggest ignoramus writing in any major news organization. He didn’t even read DeMarco’s statement to Congress.
Krug’s basic lie is equating one person’s spending with another’s income. That is patently false, because it totally ignores productivity; he is only looking at money and not the goods and services that are exchanged for the money. It is very much possible for everyone to not spend all their income, much in the same way some people borrow and are capable of spending more than their income. What everyone is saving is the surplus of their productivity, which (hopefully) is more than what you need to live, and this translates into wealth. Otherwise, we would outlaw all retirement programs and 401K’s because that would be income not spent and a major cause of poverty.
Krugman knows he is putting out a bald-face lie. No economist can be that incompetent. What worries me is that economic education is so poor in America that most of the ignorant slobs that still read NYT will believe him.
I actually have that hanging by my desk at work.
Correct, I have posted many times that Krugman is just another ‘progressive/economic justice Marxist’ who the lib establishment dresses up as an expert economist to validate their theories.
When GWB was POTUS Krug said that his deficits will destroy the US, now he says they are too small and larger ones will save the country.