dscianni

Confessions of an Austrian Economist

"Ultimately, my position on the cure to our economic ills is largely unchanged. We need to save more, spend less and reduce debt. We need to invest in our infrastructure, human and capital, and we need to make things people want - not turn into a mass of money changers and finance wizards.

However, I now recognize the very real need to mitigate economic fallout from this downturn through monetary and fiscal stimulus in order to prevent worst-case outcomes that result from the deleveraging downward spiral. "

well, I guess here lies the prob: "We need to save more, spend less and reduce debt" means getting rid of current excess capacity (SUV, McMansion every other block, etc.) .. no stimulus will get you down that road, only take you on costly and longer sidepaths!

A change in habits is no economic affair, albeit it reverberates in the economy...