Wednesday, June 17, 2009

Non-Gotcha on Krugman

Many sites are pointing to an old assertion from Paul Krugman that we need a housing bubble. The irony in what he is saying is so obvious I am stunned that people are citing this as a slam on him.
Arnold Kling summarizes very sensibly, I think.
Krugman was mainly expressing pessimism. He was not cheerfully advocating a housing bubble, but instead he was glumly saying that the only way he could see to get out of the recession would be for such a bubble to occur.


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