Wednesday, July 08, 2009
From time to time, Glenn Reynolds will catch wind of news so ridiculous that it resembles an Onion parody, and then link to both, often under a headline like "Life Imitates the Onion." As it turns out, Alex Epstein of the Ayn Rand Institute may have upped the ante in that game.
Yesterday, Epstein noted that in 2002, Paul Krugman advocated replacing the Dot-com bubble with a government-induced housing bubble. (This remedy Epstein shows later to come from the same lot of snake oil Krugman was selling the year before.)
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. [Epstein's italics]That sounded eerily familiar to me. Today, the reason for this dawned on me: It sounds just like a parody I read not too long ago at the Onion.
A panel of top business leaders testified before Congress about the worsening recession Monday, demanding the government provide Americans with a new irresponsible and largely illusory economic bubble in which to invest.Paul Krugman's track record isn't just "inconvenient:" It's laughable.
"What America needs right now is not more talk and long-term strategy, but a concrete way to create more imaginary wealth in the very immediate future," said Thomas Jenkins, CFO of the Boston-area Jenkins Financial Group, a bubble-based investment firm. "We are in a crisis, and that crisis demands an unviable short-term solution."