link
http://economistsview.typepad.com/economistsview/2007/03/summers_policym.html#c64387012

mark:

"He's right that policymakers should look forward,
but I think we should also remember
Mishkin's cautions about

inflation expectations losing their anchor.."

respectfully mark
not for a second do i agree

larry the lizard calls this one dead right

global effective demand needs to be co ordinated
so a reduction in the us component is balanced by an increase elsewhere

china japan and the gulf oilers
need to step up their imports dramatically
to off set our declining import growth

Posted by: | Link to Comment | Mar 26, 2007 6:13:04 AM

paine says...
until that compensation in imports is in place

the fed needs to hold off
the domestic recession --- if it can ---
with easy credit

i hate summers but he's right

now we need to reflate the mortgage sector

btw
i don't recommend this forward looking approach
in iraq
imo
the expected post troop evac intercommunal blood bath
is not likely to be better managed by iraqis themselves
if its postponed by an extention of
our deadly refereeing

laff

"This is nonsense"

tell that to the folks at the plaza accord

or the post gold standard conferences

or really any old global hi fi crisis

the collaboration exists despite conflicts

can it brake down

and how

but to say it doesn't exist...

you're
not watching the play closely enough my friend

that they don't act for the best for all of us

they do act for the best for their backerlaff

you have a very interesting mind

it can imply one think
state another
proceed undaunted on a third
often nearly opposite basis

its like mercury

fun to play with

example:

"to believe that the WTO is manipulated by a few countries for their own personal benefit is simply grotesque"

where'd that come from ???

laff you are a delight...though i doubt you're really anymore french then the fries i ate last nite

read as well as write

example of none read

paine: "question the eternal growth paradigm"

Do you question that the sun rises in the east?

re read that comment at your leisure
you'll see
your
sun rise seminar
was directed at the wrong person

the fed policy should be to ease credit for flat flipping in the possible hot lot zones

ie
flat dollar for dollar re fi
and allow transactions
to go forward on take out mortgages
and house resales at same price or less with a 3 year month look back

i'm just roughing this out

but liquidity can't be withdrawn
the plateau must be kept liquid
till the rest of the price structure and incomes catch up

its relief thru easy credit

this is not going to create great problems because the ponzi stage had its back broken
getting out even is enough

btw

thats what the imf does for
the hi fi rollers

if they happen to get
trapped with their hot money
still inside
a foreign house
suddenly
in melting currency mode

why not
for homey home owners
american dreamers
par excellence

Posted by: paine | March 26, 2007 12:14 PM

but the "don't look back "line
should not apply
to those who created
the basis for this debacle
in high places

starting with
our renowned
globe saving
brill cremed
ex central banker
alan of green hornet

Posted by: paine | March 26, 2007 12:18 PM

"Every week, 140,000 families are buying into the housing market, many at bubble inflated prices."

yes but not increasing the bubble only spreading it
this is a very important difference

"These are the families who will suffer the greatest harm when housing prices return to their trend values."

what about the already stranded ????

how you gonna help them
if you let the resale value of their house and lot
to sink below their mortgage???

" I can see no justification in having the Fed act to sustain this bubble so that more families can take a devastating hit on their major financial asset"

are you sure you want to leave those folks up there stranded ???

sustaining it
is not the same obviously
as let ing it take off again

i say
the fed created the bubble
so its obliged
to those folks it hung up there

who need to move
or refi

who need to get out even
on lots with a bubble
already in them

by the logic of it
those reselling
without a bubble built into their mortgage
will get a reward thru comp price parity with a bubbled mortgage house of similar real value

but hey

crucify the creditors
here
not the hapless slobs
they gulled

starting as i say with the ultimate infamy

the former creditor in chief
the man from rand

Posted by: Anonymous | March 26, 2007 12:39 PM