I am not a follower of Krugman. If he says buy, I would sell and vice-versa.
On Mon, Jun 22, 2009 at 12:23 PM, dick thompson <[email protected]>wrote: > Pity - sounds like you though. > > > Travis wrote: > > FYI: That "Travis" is not me. LOL > > On Mon, Jun 22, 2009 at 9:56 AM, bruce majors <[email protected]>wrote: > >> >> >> >> >> >> *Krugman's Intellectual Waterloo >> *by Lilburne >> Posted on 6/22/2009 >> >> Last Monday evening, Lew Rockwell, from a tip by someone named "Travis," >> posted <http://www.lewrockwell.com/blog/lewrw/archives/027541.html> this >> damning quote of Paul Krugman's from a 2002 *New York Times* >> editorial<http://www.nytimes.com/2002/08/02/opinion/dubya-s-double-dip.html?scp=4&sq=krugman%20mcculley%20bubble&st=cse> >> : >> >> To fight this recession the Fed needs…soaring household spending to >> offset moribund business investment. [So] Alan Greenspan needs to create a >> housing bubble to replace the Nasdaq bubble. >> >> Krugman. 2002. Calling for a housing bubble. >> >> What's more, by explicitly calling for a new bubble to replace the >> recently burst one, he anticipated by 6 years the *Onion*'s hilarious >> "report<http://www.theonion.com/content/news/recession_plagued_nation_demands>" >> that "demand for a new investment bubble began months ago, when the subprime >> mortgage bubble burst and left the business world without a suitable source >> of pretend income." Except Krugman was being *serious*. >> >> The quote caught on in the blogosphere, to such an extent that Krugman >> actually >> responded<http://krugman.blogs.nytimes.com/2009/06/17/and-i-was-on-the-grassy-knoll-too/>in >> his New York Times blog Wednesday morning: >> >> Guys, read it again. It wasn't a piece of policy advocacy, it was just >> economic analysis. What I said was that the only way the Fed could get >> traction would be if it could inflate a housing bubble. And that's just what >> happened. >> >> So with a deft little two-step, Krugman paints himself as a doctor who >> gave an excellent diagnostic, and not a disastrous prescription. One of his >> ditto-heads posted on his blog that saying Krugman advocated or caused the >> housing bubble was "Like saying Nostradamus caused the rise of European >> fascism." >> >> At the same time, with his headline of "And I was on the grassy knoll, >> too" he paints his critics (especially the Austrians) as conspiracy >> theorists, akin to the Lone Gunmen (the Kennedy-assassination theorists from >> the X-Files TV show). Just like with the matter of Jekyll Island and the >> events leading up to the creation of the Fed, an obvious conclusion from a >> matter of public record is portrayed by establishment sophistry as unmoored >> crankiness. And once again, it works: another ditto-head dismissively >> remarked "no need to reason with those folks." >> >> Even economist Arnold Kling bent over >> backwards<http://econlog.econlib.org/archives/2009/06/defending_what.html>to >> interpret the column in a benign light: >> >> 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. >> >> Krugman thanked Kling for his "gracious, sensible explication". I can just >> imagine Kling running around his office in glee at having been nodded at by >> a celebrity Nobel Laureate, exclaiming, "He likes me! He likes me!" >> >> Mark Thornton on the Mises blog followed up with a devastating >> collection<http://blog.mises.org/archives/010153.asp>of 2001 Krugman quotes >> clearly documenting his support for inducing a >> housing bubble. The most damning of this batch is the following from a 2001 >> interview <http://www.pkarchive.org/economy/ML071801.html> with Lou >> Dobbs: >> >> Meanwhile, economic policy should encourage other spending to offset the >> temporary slump in business investment. Low interest rates, which promote >> spending on housing and other durable goods, are the main answer. [emphasis >> added] >> >> How the hell can anyone spin that as a purely academic musing, and not a >> policy recommendation for artificially inducing housing spending? >> >> Ignoring the other quotes for a moment, and just judging from the 2002 >> column, did Krugman support pumping up a housing bubble or not? Given that, >> even in his recent blog defending himself, he explicitly stated his belief >> that "the only way the Fed could get traction would be if it could inflate a >> housing bubble," there are only two possibilities: >> >> >> 1. He did not support inducing a housing bubble, and wanted the Fed to >> not fight the recession. >> 2. He did support inducing a housing bubble. >> >> >> Anyone even somewhat familiar with Krugman's attitude toward Fed activism >> should know that proposition #1, that Krugman supported a do-nothing policy, >> is preposterous. So, especially after bringing back in the quotes gathered >> by Mark Thornton, the case for proposition #2 is overwhelming. >> >> And what about his strawman <http://en.wikipedia.org/wiki/Strawman>protests >> that he didn't cause the housing bubble, much less the Enron >> scandal or Kennedy's assassination? The man is willfully missing the point. >> What is damning about these quotes is not that he necessarily caused >> anything. What is devastating about them is that they expose the >> intellectual bankruptcy of his economic principles. Those who look up to him >> like the second coming of Adam Smith should realize that the neo-Keynesian >> principles that lead him to advocate aggressive interest-rate cuts and >> mammoth public spending now, are the very same principles that led him to >> advocate inducing a housing bubble then. He would himself affirm that his >> economic principles haven't fundamentally changed since then. So the >> conclusions and policy prescriptions he infers from them are just as wildly >> wrong now as they were then. >> >> [VIEW THIS ARTICE ONLINE] <http://mises.org/story/3530> >> >> ________________________ >> >> Lilburne is a teacher and writer based in San Francisco. He writes about >> economics, history, and philosophy at his blog Summa >> Anthropica<http://mises.org/Community/blogs/lilburne/default.aspx>. >> >> __._,_.___ >> Messages in this topic >> <http://groups.yahoo.com/group/tsowell/message/5902;_ylc=X3oDMTM0aDdrcThpBF9TAzk3MzU5NzE0BGdycElkAzQzNDQyNTUEZ3Jwc3BJZAMxNzA1MDYwMzc1BG1zZ0lkAzU5MDIEc2VjA2Z0cgRzbGsDdnRwYwRzdGltZQMxMjQ1NjgxNTgwBHRwY0lkAzU5MDI-> >> (1) Reply (via web post) >> <http://groups.yahoo.com/group/tsowell/post;_ylc=X3oDMTJwZ21kZWQ4BF9TAzk3MzU5NzE0BGdycElkAzQzNDQyNTUEZ3Jwc3BJZAMxNzA1MDYwMzc1BG1zZ0lkAzU5MDIEc2VjA2Z0cgRzbGsDcnBseQRzdGltZQMxMjQ1NjgxNTgw?act=reply&messageNum=5902>| >> Start a new topic >> <http://groups.yahoo.com/group/tsowell/post;_ylc=X3oDMTJlbnBqaHZnBF9TAzk3MzU5NzE0BGdycElkAzQzNDQyNTUEZ3Jwc3BJZAMxNzA1MDYwMzc1BHNlYwNmdHIEc2xrA250cGMEc3RpbWUDMTI0NTY4MTU4MA--> >> Messages<http://groups.yahoo.com/group/tsowell/messages;_ylc=X3oDMTJlc2xsN2RjBF9TAzk3MzU5NzE0BGdycElkAzQzNDQyNTUEZ3Jwc3BJZAMxNzA1MDYwMzc1BHNlYwNmdHIEc2xrA21zZ3MEc3RpbWUDMTI0NTY4MTU4MA-->| >> Files<http://groups.yahoo.com/group/tsowell/files;_ylc=X3oDMTJmbW8xMWdiBF9TAzk3MzU5NzE0BGdycElkAzQzNDQyNTUEZ3Jwc3BJZAMxNzA1MDYwMzc1BHNlYwNmdHIEc2xrA2ZpbGVzBHN0aW1lAzEyNDU2ODE1ODA->| >> Photos<http://groups.yahoo.com/group/tsowell/photos;_ylc=X3oDMTJlaGdwYjdqBF9TAzk3MzU5NzE0BGdycElkAzQzNDQyNTUEZ3Jwc3BJZAMxNzA1MDYwMzc1BHNlYwNmdHIEc2xrA3Bob3QEc3RpbWUDMTI0NTY4MTU4MA-->| >> Links<http://groups.yahoo.com/group/tsowell/links;_ylc=X3oDMTJmZmpqZG02BF9TAzk3MzU5NzE0BGdycElkAzQzNDQyNTUEZ3Jwc3BJZAMxNzA1MDYwMzc1BHNlYwNmdHIEc2xrA2xpbmtzBHN0aW1lAzEyNDU2ODE1ODA->| >> Database<http://groups.yahoo.com/group/tsowell/database;_ylc=X3oDMTJjcG5jaWEzBF9TAzk3MzU5NzE0BGdycElkAzQzNDQyNTUEZ3Jwc3BJZAMxNzA1MDYwMzc1BHNlYwNmdHIEc2xrA2RiBHN0aW1lAzEyNDU2ODE1ODA->| >> Polls<http://groups.yahoo.com/group/tsowell/polls;_ylc=X3oDMTJmNGI1Z2RxBF9TAzk3MzU5NzE0BGdycElkAzQzNDQyNTUEZ3Jwc3BJZAMxNzA1MDYwMzc1BHNlYwNmdHIEc2xrA3BvbGxzBHN0aW1lAzEyNDU2ODE1ODA->| >> Members<http://groups.yahoo.com/group/tsowell/members;_ylc=X3oDMTJlOWt0OXRxBF9TAzk3MzU5NzE0BGdycElkAzQzNDQyNTUEZ3Jwc3BJZAMxNzA1MDYwMzc1BHNlYwNmdHIEc2xrA21icnMEc3RpbWUDMTI0NTY4MTU4MA-->| >> Calendar<http://groups.yahoo.com/group/tsowell/calendar;_ylc=X3oDMTJkZzYwdmN0BF9TAzk3MzU5NzE0BGdycElkAzQzNDQyNTUEZ3Jwc3BJZAMxNzA1MDYwMzc1BHNlYwNmdHIEc2xrA2NhbARzdGltZQMxMjQ1NjgxNTgw> >> MARKETPLACE >> How Many Triangles? 92.6% of Americans Fail this >> Question!.<http://us.ard.yahoo.com/SIG=14ko15r98/M=733250.13450161.13535737.10835568/D=groups/S=1705060375:MKP1/Y=YAHOO/EXP=1245688780/L=/B=QZk5CkPDhC8-/J=1245681580652548/K=H.KaQiJFwULl3o291mwhMA/A=5754783/R=0/SIG=12havo8bp/*http://www.socialtrack.net/redir.aspx?CID=24801&AFID=43106&DID=108590&SID=group> >> ------------------------------ >> You have 1 New Message: Someone Challenges your >> IQ!.<http://us.ard.yahoo.com/SIG=14k0gpofr/M=733250.13450162.13535738.10835568/D=groups/S=1705060375:MKP1/Y=YAHOO/EXP=1245688780/L=/B=Qpk5CkPDhC8-/J=1245681580652548/K=H.KaQiJFwULl3o291mwhMA/A=5759333/R=0/SIG=12jkh3gvs/*http://www.socialtrack.net/redir.aspx?CID=24801&AFID=43106&DID=108590&SID=message> >> ------------------------------ >> Mom Power: Discover the community of moms doing more for their families, >> for the world and for each >> other<http://us.ard.yahoo.com/SIG=14kpq6uap/M=493064.12016295.13271503.10835568/D=groups/S=1705060375:MKP1/Y=YAHOO/EXP=1245688780/L=/B=Q5k5CkPDhC8-/J=1245681580652548/K=H.KaQiJFwULl3o291mwhMA/A=5697381/R=0/SIG=11eaa5dke/*http://groups.yahoo.com/group/mompowergroup/> >> [image: Yahoo! >> Groups]<http://groups.yahoo.com/;_ylc=X3oDMTJkNXFjaHVjBF9TAzk3NDc2NTkwBGdycElkAzQzNDQyNTUEZ3Jwc3BJZAMxNzA1MDYwMzc1BHNlYwNmdHIEc2xrA2dmcARzdGltZQMxMjQ1NjgxNTgw> >> Change settings via the >> Web<http://groups.yahoo.com/group/tsowell/join;_ylc=X3oDMTJmbW1xZGNxBF9TAzk3NDc2NTkwBGdycElkAzQzNDQyNTUEZ3Jwc3BJZAMxNzA1MDYwMzc1BHNlYwNmdHIEc2xrA3N0bmdzBHN0aW1lAzEyNDU2ODE1ODA->(Yahoo! >> ID required) >> Change settings via email: Switch delivery to Daily >> Digest<[email protected]?subject=email+delivery:+Digest>| Switch >> format to >> Traditional<[email protected]?subject=change+delivery+format:+Traditional> >> Visit Your Group >> <http://groups.yahoo.com/group/tsowell;_ylc=X3oDMTJkZGl2bTRiBF9TAzk3NDc2NTkwBGdycElkAzQzNDQyNTUEZ3Jwc3BJZAMxNzA1MDYwMzc1BHNlYwNmdHIEc2xrA2hwZgRzdGltZQMxMjQ1NjgxNTgw>| >> Yahoo! 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