"It is easy to confuse what is with what ought to be, especially when what is has worked out in your favor."
- Tyrion Lannister

"Lannister. Baratheon. Stark. Tyrell. They're all just spokes on a wheel. This one's on top, then that's ones on top and on and on it spins, crushing those on the ground. I'm not going to stop the wheel. I'm going to break the wheel."

- Daenerys Targaryen

"The Lord of Light wants his enemies burned. The Drowned God wants them drowned. Why are all the gods such vicious cunts? Where's the God of Tits and Wine?"

- Tyrion Lannister

"The common people pray for rain, healthy children, and a summer that never ends. It is no matter to them if the high lords play their game of thrones, so long as they are left in peace. They never are."

- Jorah Mormont

"These bad people are what I'm good at. Out talking them. Out thinking them."

- Tyrion Lannister

"What happened? I think fundamentals were trumped by mechanics and, to a lesser extent, by demographics."

- Michael Barone

"If you want to know what God thinks of money, just look at the people he gave it to."
- Dorothy Parker

Tuesday, November 05, 2013

After the Music Stopped

You Got Me Feelin Hella Good So I'm Gonna Keep on Dancing: Alan Blinder: "After the Music Stopped": Tuesday Book Reviews Extended Version Weblogging by DeLong

If fiscal policy was similar to the way it was during previous downturns we'd be at 6 percent unemployment if the Fed performed the same actions. The private sector deleveraged, badly scared after the financial crisis. State governments were like 50 little Hoovers. Then came 2011 and the sequester and government shutdown. Bernanke threw a bone to the hawks in June with his taper talk and that slowed the momentum of the economy as well. Japan is using activist monetary policy to good effect and hopefully continues. There is no danger of another bubble anytime soon. If the House goes Democratic, things could turn around somewhat. If the Democrats win in 2016, likewise. Commenter bakho: "Our big hope going forward is that the ACA will unchain employees (shackled to their jobs by health care benefits) to strike out on their own, wrest control from the one percent and revive the economy. Hopefully the availability of affordable health care will give more power to labor and bid up wages."

DeLong is right. Blinder and Gorton are good on the crisis. Bernanke referenced Gorton in Congressional testimony. We know what to do. Bernanke and other central banks flooded the financial system with liquidity preventing another banking crisis. The U.S., Germany, China, etc. all did fiscal stimulus programs to help the central banks with the turn around. They all retrenched too quickly because of politics.

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