Larry Summers advocated a mix of both fiscal (tax policy) stimulus as well as our Greenspan-esque default, monetary (interest-rate policy) stimulus, to right the precipitous US economy in a comment in the pink pages earlier this week.
"Why America must have a fiscal stimulus" | Financial Times | 6 Jan 2008
Yesterday, Stephen Roach, Chairman of Morgan Stanley Asia, (the very best writer with a banking job) explained with mellifluous lucidity why the US dollar's weakness -- and part of our oil price problem -- is attributable to our negative savings habit. His proscription, that Washington should let asset prices (houses and common equities) find their levels (without supporting the banks and other notorious usurers), makes too much sense.
"America's inflated asset prices must fall" | Financial Times | 8 Jan 2008
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