fiscal stimulus

In 2008 the Fed Bought Bonds (and Kept Buying and Buying). Will it Buy Equities Now?

Quantitative Easing for Stocks [Note to Readers: The views expressed here are solely those of Ross Kaplan, and do not represent Edina Realty, Berkshire Hathaway (“Berkshire”), or any other entity referenced. Edina Realty is a subsidiary of Berkshire.] With the Dow in free fall, investors are looking to the cavalry (the Fed) to once again...
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Pulling the Plug on Paul Krugman

Shackling the Bond Vigilantes In a world where pundits divide into those who think the federal government should be doing more to help the economy, and those who think it’s already done (way) too much, economist and New York Times columnist Paul Krugman lands squarely in the former camp. In fact, you might say that he is...
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Reviving "Animal Spirits"

Less Trust = Simpler Financial System “The more complex the transaction, the more trust is needed to sustain the transaction.” –Robert Shiller, “Animal Spirits Depend on Trust“; The Wall Street Journal (1/27/2009) Robert Shiller, the Yale economist who made his name calling the 2000 Stock Market Bubble, has an excellent piece in Tuesday’s Wall Street...
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Obama’s "Goldilocks" Approach

Obama’s Fiscal Stimulus Splits the Difference“Obama’s economic plan falls well short of what’s needed.”–Paul Krugman, “The Obama Gap” (NYT, 1/9/09)“Obama has vowed to do everything at once . . this will be the most complex piece of legislation in American history.”–David Brooks, “The Confidence Surplus” (NYT, 1/9/09)Depending on who you believe, President-elect Obama has devised...
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