P-Krug: Neither Liar nor Quack
P-Krug is likely neither a liar nor a quack. So what gives?
Two examples of quotes: Is P-Krug confused? No. And he's not dumb. He must just think WE are dumb. And the people who read him, and quote him, ARE dumb.
1. Workouts, Not Bailouts - New York Times, Aug 17, 2007 Many on Wall Street are clamoring for a bailout -- for Fannie Mae or the Federal Reserve or someone to step in and buy mortgage-backed securities from troubled hedge funds. But that would be like having the taxpayers bail out Enron or WorldCom when they went bust -- it would be saving bad actors from the consequences of their misdeeds... Say no to bailouts - but let's help borrowers work things out.
2. Is saving our Fannie enough? - Seattle Times, Sep 9, 2008 The just-announced federal takeover of Fannie Mae and Freddie Mac, the giant mortgage lenders, was certainly the right thing to do - and it was done fairly well, too... So Fannie and Freddie had to be rescued...
Deficits and interest rates
1. Deficits and interest rates - New York Times, Aug 14, 2009 It turns out that there's a strong correlation between budget deficits and interest rates - namely, when deficits are high, interest rates are low ... On reflection, it's obvious why...
2. A fiscal train wreck - New York Times, Mar 11, 2003 But we're looking at a fiscal crisis that will drive interest rates sky-high. A leading economist recently summed up one reason why: ''When the government reduces saving by running a budget deficit, the interest rate rises.''
There is a lot more where this came from.
(nod to Mel H)