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, as Paul McCulley of Pimco put it, Alan Greenspan needs to create a housing bubble to replace the Nasdaq bubble. Judging by Mr. Greenspan's remarkably cheerful recent testimony, he still thinks he can pull that off. But the Fed chairman's crystal ball has been cloudy lately; remember how he urged Congress to cut taxes to head off the risk of excessive budget surpluses? And a sober look at recent data is not encouraging.


"Dubya's Double Dip?", The New York Times, 2 August 2002 - The New York Times Columns

The New York Times Dubya's Double Dip? - NYTimes.com

Paul Krugman Quotes

To fight this recession the Fed needs more than a snapback; it needs soaring household spending to offset moribund business investment. And to do...

To fight this recession the Fed needs more than a snapback; it needs soaring household spending to offset moribund business investment. And to do...

To fight this recession the Fed needs more than a snapback; it needs soaring household spending to offset moribund business investment. And to do...

To fight this recession the Fed needs more than a snapback; it needs soaring household spending to offset moribund business investment. And to do...