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Wolfgang Franz, who heads Germany's economic advisory panel, rips into Paul Krugman's critique...

Wolfgang Franz, who heads Germany's economic advisory panel, rips into Paul Krugman's critique of Bundesbank President Axel Weber. Franz: "Where did the financial crisis begin? Which central bank conducted monetary policy that was too loose? Which country went down the wrong path of social policy by encouraging low income households to take on mortgage loans that they can never pay back?"
Comments (18)
  • Tack
    , contributor
    Comments (12770) | Send Message
     
    As they add at the end of mathematical proofs:

     

    Q.E.D.
    23 Jun 2010, 06:36 PM Reply Like
  • dfbell
    , contributor
    Comments (1555) | Send Message
     
    and yet, we maintain an army in Germany to protect them and are putting up a missile shield. We are sooooo screwed up ....
    23 Jun 2010, 06:40 PM Reply Like
  • dfbell
    , contributor
    Comments (1555) | Send Message
     
    let me clarify this folks!
    I meant we are screwed up that we dont run our banks and economy more like the Germans, And to compound our weakness there, we have no problems writing billion ... trillion dollars checks to fund our war machine. We have a massive dose of hubris and this will all turn out very badly.
    24 Jun 2010, 04:26 AM Reply Like
  • Duude
    , contributor
    Comments (3358) | Send Message
     
    Sick 'em Wolfie!
    23 Jun 2010, 06:50 PM Reply Like
  • tripleblack
    , contributor
    Comments (13441) | Send Message
     
    LOL, first construct a cloud filled with straw men, then attack the straw men...

     

    Wolfgang reminds me of the American politicians he is indirectly attacking, who are prone to use the same tactics.

     

    Not that I am consumed with curiousity on the topic, but you have to wonder about the accuracy of Mr. Krugman's comments about Axel Weber. Given the nature and heat of the defense, it would seem that Krugman hit some sensitive spots there.
    23 Jun 2010, 06:52 PM Reply Like
  • mannettino
    , contributor
    Comments (1065) | Send Message
     
    wow...seems like straight-talk is breaking out all over the place these last couple days (US Military, Germany, etc.)...
    For all those "thumbs down" waiting to pounce on this post: just because you don't like it doesn't mean it ain't true!

     

    just sayin....
    23 Jun 2010, 07:46 PM Reply Like
  • montanamark
    , contributor
    Comments (1434) | Send Message
     
    hey mannettino, give em a break. i hear they get a quarter for each negative mark. something about a soros reinvestment/acorn
    initiative.
    23 Jun 2010, 07:50 PM Reply Like
  • cincinnatijake
    , contributor
    Comments (146) | Send Message
     
    "Where did the financial crisis begin? Which central bank conducted monetary policy that was too loose? Which country went down the wrong path of social policy by encouraging low income households to take on mortgage loans that they can never pay back?"

     

    Damn! He gotcha there, son! Peace, love, and chicken wings...
    23 Jun 2010, 08:09 PM Reply Like
  • DinNYC
    , contributor
    Comments (73) | Send Message
     
    Paul krugman is another one of the liberal elite who like to play revisionist after their policies fail and find some other scapegoat for it. Germany has it right: when it came to housing we actually out-liberal'd Europe. No small feat...
    23 Jun 2010, 08:13 PM Reply Like
  • The Geoffster
    , contributor
    Comments (4010) | Send Message
     
    Krugman is a socialist masquerading as a Keynesian. If pump priming works, which is debatable, the government cannot already be bankrupt. There is no more money. It's time to start over. Take the medicine. Go bankrupt and quit bailing everybody out with phony paper promises.
    23 Jun 2010, 08:25 PM Reply Like
  • MarketGuy
    , contributor
    Comments (3983) | Send Message
     
    Krugman just stepped in it again.
    23 Jun 2010, 08:50 PM Reply Like
  • Machiavelli999
    , contributor
    Comments (829) | Send Message
     
    Krugman was not the one advocating for loose monetary policy and huge budget deficits during boom times. In fact, he wanted to quite the opposite.

     

    But now, that we actually do need loose money and loose fiscal policy, the "defecit-hawks" have suddenly found religion.
    23 Jun 2010, 10:21 PM Reply Like
  • bob adamson
    , contributor
    Comments (4555) | Send Message
     
    There are times and circumstances for everything. The US between 2003 and 2006 was not the time for monetary easing and significant national deficits. Following the September/October of 2008 meltdown unprecedented monetary easing and significant national deficits were needed in the US and most other advanced mature economies to offset the collapse of the money supply attendant on the collapse of the derivatives and real estate bubbles. Currently the EU economies are suffering an apprehended further deflationary downturn accentuated by the need for austerity in several of its member States not including Germany, the Netherlands, Sweden and possibly others as well.

     

    Arguably it is now the role of Germany, the Netherlands and Sweden etc. to provide some fiscal stimulus to limit the impending deflationary pressures throughout western Europe. This is not the time, however, for misplaced analogies with other times, places and situations.
    23 Jun 2010, 09:08 PM Reply Like
  • Teutonic Knight
    , contributor
    Comments (2000) | Send Message
     
    I honestly think that some commenter here had over-reacted. I think my fellow Teuton was just being forthright in his remarks. He said what he meant and meant what he said, no fluff.
    23 Jun 2010, 10:10 PM Reply Like
  • Machiavelli999
    , contributor
    Comments (829) | Send Message
     
    The amazing thing about Krugman is that he always responds to all his critics and never ignores critiques of himself.

     

    krugman.blogs.nytimes..../

     

    In fact, it's almost sad. The Tea Party crowds keeps coming up with idiotic arguments and he constantly puts them down, but they just keep coming back with the same idiotic arguments.
    23 Jun 2010, 10:19 PM Reply Like
  • jarigden
    , contributor
    Comments (3) | Send Message
     
    If Krugman was a toilet paper, it would fly off the shelves.
    23 Jun 2010, 11:11 PM Reply Like
  • nimnar
    , contributor
    Comments (4) | Send Message
     
    The irony with statements like:
    "Where did the financial crisis begin? Which central bank conducted monetary policy that was too loose?",
    is that Germany, in backing the Euro, also allowed a loose monetary policy...albeit papered over by European 'unity'. As American borrowers, the PIGS took loans they will never repay.

     

    Ultimately, if the Germans go down the path of austerity the Euro will have to come apart.
    23 Jun 2010, 11:53 PM Reply Like
  • Aramis
    , contributor
    Comments (28) | Send Message
     
    The PIGS credit ratings were a hell of a lot better than Bubba's.
    24 Jun 2010, 12:41 AM Reply Like
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