Insiderman

Employment Is Defining the Shape of this Great Recession

I don't know why this is so hard unless you're a Keynesian! We're heading for 1970's style stagflation brought on by inappropriate macroeconomic fiscal policies. Housing price inflation was brought on by easy credit (enhanced through risk transference to blind third parties) stopped dead in its tracks by a supply shock (credit collapse).

I'm surprised that Obama selected Paul Volcker head of the Economic Recovery Advisory Board because Volcker raised the Fed Funds target to about 20% in 1981 and crashed the economy short-term in preparation for a longer-term growth phase.

This time the Fed wants to inflate us out of the crisis. Woe is us.