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    Economics / Bush, deficits, fiscal policy, GDP, Keynes, Obama, Reagan /

    Debt Battle Lines Drawn

    January 26, 2011

    Given that the Presidential State of the Union Address is simply an opportunity to showcase a preferred direction rather than a time to introduce solid legislation, last night’s effort was predictably dull. So was the response. My reaction to this theatrical moment is that it sets the stage for the next round of arguing and […]

    Economics / bailouts, banking, Case Shiller Index, home prices, real estate /

    House Prices Slip Again

    January 25, 2011

    It is worth noting today’s Case-Shiller index report. Home prices slid slightly again in November, the latest month for which we have data. The decline was slight at -1.0%, but it adds to a series of bad months recently and means that the year ended in November 2010 saw a 1.6% decline. So housing lost […]

    Economics / bailouts, bank reform, banking, interest rates, monetary policy, Paul Krugman /

    Bank Subsidies

    January 25, 2011

    I take slight issue with Krugman today. His blog at the New York Times has an entry about low cost funding from the Federal Reserve Board acting as a subsidy to the banks. He is too dismissive of the claim made by Axel Leijonhfvud that because the Fed is providing the banks with reserves at […]

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