Quote:
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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, (note this clause, because it changes the meaning from the one Miles wants you to believe to the actual meaning) as Paul McCulley of Pimco put it, Alan Greenspan needs to create a housing bubble to replace the Nasdaq bubble (it's not even Krugman's words, he's quoting another man's opinion without supporting it)."
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Let's focus on this part, as it's the most relevant. Does a man who is truly anti-bubble use the phrase "needs to create a housing bubble". Note the use of the word "need" here, appearing to indicate absolute necessity. This appears to be the crux of the the matter.
But Ok, let's assume that this wasn't advocacy of a bubble, and PK was merely quoting another guy. Where is the slamming of this point of view? Did he include this quote for fun and giggles? I think my summation in the previous post is more than fair to Mr. Krugman.
Vote now, folks, lines close at 6pm.