Being Smart and Efficient on the Stimulus and My Career

Zach McDade recently posted explaining the housing bubble and how it has helped shred the broader financial system. I wanted to note two trigger factors obscured by his general statement: “the market decided that we had built too many houses.” Here they are:
1. Suburban housing values fell, causing people to default on mortgages, precisely because [...]

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A Lack of Focus

Mr. McDade did an excellent job in detailing with what went wrong and caused this current economic crisis, and we should focus immediately on focusing the current crisis.  The best route would be to detoxify the banks and to buy up their assets – the primary goal of fixing up the economy should be to [...]

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What went wrong: Subprime lending

This post is for those who still feel they couldn’t quite answer the question, “What went wrong with our economy?” It looks at one aspect of the problem, subprime lending.
The economy essentially has two levels – the real and the nominal. The real level is the production of real (actual) goods and services. The nominal [...]

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