Skip to comments.Paul Krugman Makes The Bull Case For The Economy In One Simple Paragraph
Posted on 02/06/2012 5:13:54 PM PST by blam
Paul Krugman Makes The Bull Case For The Economy In One Simple Paragraph
Febuary 6, 2012
Paul Krugman has a new column up with the dreary title: Things Are Not OK.
The gist is simple enough: Despite the good employment report, things are still pretty horrible (in that we're very far from full employment) and yet because of the way politics are these days, there's a good chance that the good news will cause people to jump too fast towards austerity and monetary tightening.
All that being said, this paragraph presents what is probably the clearest bull argument for the economy there is.
...its not hard to see how this recovery could become self-sustaining. In particular, at this point America is seriously under-housed by historical standards, because weve built very few houses in the six years since the housing bubble popped. The main thing standing in the way of a housing bounce-back is a sharp fall in household formation econospeak for lots of young adults living with their parents because they cant afford to move out. Let enough Americans find jobs and get homes of their own, and housing, which got us into this slump, could start to power us out.
This really encapsulates a lot of the ideas we've been talking about since last fall, when people really started thinking that things were going to hell in a handbasket again.
There's a lot of pent up demand for stuff like housing and cars, and if you started getting the employment ball rolling, then you could seriously see a comeback in these areas.
We're seeing it in cars. The market thinks it's seeing it in houses. Throw in jobs, and... yeah, this thing could start to snowball.
(Excerpt) Read more at businessinsider.com ...
Vote For Obama
I’ve heard a lot of guff in my day but that “BULL”
takes the cake.
Translation: Things are great and they will be even
better when other things are great too.
Circular thinking like that belongs in the circular file.
Paul Krugman......he’s really smart.....he won a nobel prize you know.......I think it was in the best cake category.
Until we have a rational energy policy, everytime the economy tries to improve, high energy prices will kill it.
In other words, until Obozo is gone, we are economically screwed.
Joe Weisenthal wears out a set of knee pads every day.
That was the biggest load of crap I’ve read in a while.
Let’s see. According to the authors, if the young folks start to look for jobs, that will create jobs. Heh. “Snowball,” eh? Make an snowball from ice in the freezer (yeah, not a snowball), and roll it around on the hot summer ground. That’ll make it snow during summer, you see, and voila! Big snowball.
Liberal policies created a housing glut. Until the market absorbs these houses, the housing construction industry (along with appliances, building materials, landscaping, etc) will not recover. We are talking years, not months. But Krugman favors subsidies and stimulus (i.e. more of the same).
"Joe Weisenthal wears out a set of knee pads every day."
The only reason people read that garbage website is because they see the name "Business Insider" and think that the people there must know a lot about businesses... not realizing that it's just a bunch of young blogger hacks.
Under-housed????????...LMAO...We gave a house to everyone that could fog a mirror and we still didn't run out!
Thousands of houses for sale for 20% less then u could buy the materials for!!!
The largest single investment class in the world continues to deflate with no end in sight. 2 million homes, at least, are empty and not even on the market yet...and there's 16 months of inventory on the market now.
Another 12million are "under water" and one has to wonder how they'll act if they lose another 10%, 20%...40%. Here in CA I have lost 30% since 2008. I'm lucky. I know people that have lost 60% and are still paying their mortgage.
But for many, not for long.
There's at least 5 years of hidden/potential inventory.
A good hedge bet is new construction economy apartments. Beer. Car Parts Stores. Guns. Ammo.
If you can afford it, good farm land with a reliable creek through it.
Ideally, a "reliable creek" that is not subject to the jurisdiction of the Corps of Engineers.
Unfortunately, there ain't no such thing...
there, fixed it...
I read last week that one in every five houses in Florida are sitting vacant. That’s amazing.
Until the Congress and the Executive Branch is replaced and retrained, nothing will even begin to improve.
He’s right in a sense. There is a lot of “pent up demand”. Do liberals even wonder why that demand is still pent up? A hint: the reason is still in our White House. If we elect a real president, we will see very rapid expansion starting as soon as the election results are announced, possibly sooner if polls make a positive outcome seem certain. The far left will credit Obama with the recovery, since the boom he created will have started barely too late to give him a second term, but he will only have created it by cratering the economy so that we had so much room in which to recover. If Obama wins, or if people settle for Romney but know they are settling, then we will see “the new normal” repeated in the media for another four years.
-—— for lots of young adults living with their parents because they cant afford to move out. Let enough Americans find jobs and get homes of their own, and housing, which got us into this slump, could start to power us out.——
In theory he’s correct....except for that fact that when the young adults find the jobs and try to move out....good luck in getting a loan for a home because the banks aren’t loaning money unless you are a solid gold risk
I might add that there are no more or very few good paying jobs out there
——I read last week that one in every five houses in Florida are sitting vacant. Thats amazing.——
I live in Florida and that simply isn’t true...... One in five are probably seriously behind or stopped paying their mortgages all together
That seemed a bit to much to me too.
I decided to go look, here's what I found:
Wow.....thanks for doing the leg work.....I’m really surprised it is that high
Seems like many homes were built by investors and never sold....
In my neighborhood at one time there were no homes even up for sell.... Until the bottom fell out.... Now probably 15 percent are up for sale
The Bull Case For The Economy In
One Two Simple Paragraph Words