TimesTalks: Paul Krugman: Is Greenspan Responsible?

[injuredeternity]

I'm sure advocating a new housing bubble and low interest rates didn't make you a suspect either, Paul.

[bobsacamano1]

why are krugman clips always so short?

[NotWillieMason]

Ah, I love these Krugman videos. Partially for Krugman, partially for the pwning of the "OMG gold standard get!" idiots.

[yakmouth77]

If you think what we have had recently is Austrian economics you are absolutely clueless.

I guess I missed where Rothbard and Hayek called for a central bank to manipulate interest rates and the money supply.

How about reading something about Austrian economics before criticizing it.

[dstauby]

We tried the Austrian school and it failed. No regulations on the derivatives. And derivatives are the source of the current problem. Greenspan was Mr. Self-Regulation. Ya that seems to have worked out well . You know, after WW2 we saw the most regulated market ever. What did we get for it? A middle class, income equality, and lots of wealth. Since 1980 we have been deregulating. Now we have income inequality, and no middle class. End the oppression of Austrian.

[AFRIKTODAY]

Dude, I don't mean to insult you but you are an idiot!

First of all, the Austrians call for hard money ( Gold and silver instead of paper); secondly, the Austrian call for less government spending and interventions ( Greenspan has intervened constantly during his term). Secondly, post world war boom was due to deregulation and less government intervention that occured during roosevelt administration during the war. Slowly and slowly, that freedom has eroded and has now culminated to socialism.

[dstauby]

Austrians are a joke. Let the free market correct itself. HAHA, Ya just let god fix it. You claim that austrian principles were not used. Please, tell me 1 regulation that was on the derivatives. I'm guessing I won't hear back from you. Cause we both know, no regulations were applied to them. Deregulation after the world war didn't start until Reagan's catastrophic administration. The post war boom happened with the most regulated market in american history.

[AFRIKTODAY]

You are the typical short spirited who focuses on little details in order to make a point over a large spectrum like the economy of a Nation. You don't even know what you are talking about!!. Derivative are a form of debt bundling of financial product sold in a highly leveraged way. Derivate simply stems from our fractional reserve monetary system where our dollar is backed by NOTHING! Austrian economics request HARD money like GOLD and SILVER where derivatives will never EXIST! Educate yourself

[dstauby]

HAHAHAHA. I noticed you couldn't name 1 regulation..... Now which philosphy advocates no regulation?

[AFRIKTODAY]

Dude, how old are you? If you cannot understand the underlying foundation of our financial structure, it is absolutely worthless to even try to discuss with you! We had the FCC to " regulate" the likes of Maddoff, Enron, lately Goldman Sachs and nothing has been done! There was a whistle blower who warned the FCC since 1999 about Robert Madoff and the man went 10 more years in a rampage without being disturbed! Why are you so simple minded boggles my mind! It is not a matter of philosophy!

[dstauby]

Regulation during Reaganomics? Please, everyone was on the deregulation train and wanted to hear none of it cause of the enormous growth. It's funny as hell to see people like you. Government is bad and deregulation is good. Then when the shit hits the fan. Hey, why didn't you regulate or investigate this crap. Stay out of my life government. Then when everything falls apart, why didn't you prevent this? Your kinda like the people on t.v. saying, "keep your government hands off my medicare"

[AFRIKTODAY]

dstauby,

Sorry but you lack a basic understanding of economics and I share your feelings for I used to think just like you. When Reagans came into power, the dollar has just been broken away from its GOLD backing and there was a lot of "inflation"! Reagan had to increase the interest rate by 20% in order to save the dollar. It was not a matter of regulation! Try to look at the big picture! Where does Obama gets the trillions of dollars he is pouring into the economy?

[dstauby]

So please explain why we went off the gold standard in the first place.

./gets popcorn

[AFRIKTODAY]

I don't know where you went to school but I doubt you have ever heard of the word INFLATION! Inflation is the artificial increase of the money supply in a country by the government! In the 60s, the US was involved in many wars all over the world and was financing tons of social programs; it engaged in INFLATIONARY monetary policies! But at the time the US dollar was backed by Gold, which led many countries to call for their GOLD! The US government had to eliminate the gold window.

[dstauby]

Did your school not discuss deflation?

[AFRIKTODAY]

Deflation is define as " reduction of the money supply" which often express itself through falling prices! We are currently dealing with "INFLATION", not freaking deflation! The federal reserve is pumping paper into the system, thus debasing the value of the dollar! The dollar index is at 77.58 today! It is inflation and I am sure you are a shopper like everyone and you must realize that most prices have gone up. Talking about a fairy tale!

[AFRIKTODAY]

The usa government had to eliminate the gold window in order to keep the remaining gold species and bullions in here in the state since the amount of paper dollar printed by the government far exceeded the GOLD itself. That's where the Bretton Wood agreeement was signed, definitively transforming the dollar into another paper FIAT currency backed BY NOTHING! Before you try to discuss a matter, make sure you have mastered all the interlinking fundamentals of the topic in question.

[dstauby]

Sucks when you find out the fairy tale is just that, a fairy tale.

Gold was 46$ an ounce in 1971

Gold was 620$ an ounce in 1978

Gold was 315$ an ounce in 1983

Gold was 380$ an ounce in 1995

Gold was 280$ an ounce in 1998.

Gold was 432$ an ounce in 2005.

This is what you want to fix your currency to? And another note, the value of the dollar has nothing to do with the U.S. not manufacturing anything? If nothing is manufactured, what is behind a currency? Fiat or Gold standard.

[AFRIKTODAY]

dstauby, you are a real child!

First of all, the dollar was backed by Gold in 1971! It shouted to 620 in 78 because of the "quantitative easing of the US federal reserve!"! Want to know why it went back down to 315 in 83? Because the FED increased the interest rate to an all time high of 20%! Dude are you kidding!

Take the same points between 98 and 2005 dude! The fed lowered the interest rate to 1% in 2001-2, and today GOLD IS AT $972! You are really pathetic!

[injuredeternity]

@dstauby I'm not really an advocate of the gold standard, but you have no idea of what you're talking about. You are giving the prices of gold AFTER the gold standard was removed. Thus, gold became susceptible to fiat inflation just like anything else. Now let's look at hyperinflation in Africa, South America, and other countries. Is that what you want to have your currency tied to? Nothing? If you want a compelling argument, at least give credible and useful data.

[AFRIKTODAY]

Look, it is very painful to try to discuss economics matter with someone who doesn't understand the very underlying essential principles of that field. You must also understand that most economists are simply WRONG and that in history, paper money unbacked by Hard commodity monies always self-destroy! My advise to you is to read Henry Haztlitt economics in one lesson and before you criticize a certain school of thought, take the pain of learning what its positions are and what it promotes.

[dstauby]

Yawn. It would seem your the one lacking. I know your type, there is no reaosning with the truth for people like you. You would rather believe in a fairy tale. And ignore the reasons we went off the gold standard. So, please educate me as to why we went off the gold standard in the first place. Since you seem to have all the answers.

[AFRIKTODAY]

Fairy tales? Are you kidding me dude? For a fairy tale, in just over 7 years, the dollar has lost close to 30% of its value in comparison to the Euro. In 2002, 1 dollar was worth 1.2 euros, today 1 dollar is less than .70 euro cents! Is that what you call a fairy tale? You must be out of your mind buddy! How much was college tuition, gas, insurance premium, gold and most basic commodities worth 6 years ago in dollar? Do a comparative price study between 2002 and now and come and talk to me!

[dstauby]

And the euro is what? GASP, fiat currency. The gold standard devalues as well. LOL, you think we had nothing but growth when we had the gold standard? HAHAHAHA.

Indeed, fairy tales. A gold standard subjects a country to the vagaries of the gold-market, is generally deflationary, and encourages mercantilism.

Yes lets use the mercantilism policies like the ones used during the depression. What happened when those policies were used???

[AFRIKTODAY]

Of course the Euro is fiat dude! Did you discover hot water or what? All world's currency are fiat! But, not all unlike the US, the European central banks has not increased its money supply to the extent of the US! The fed has increased the money supply nowadays to a 46 years high!! Never before seen in history! And you expect deflation? You must be seriously out of your mind dude!

Also, what is deflation anyway, I doubt you can even define that term! Seriously you are an intellectual child!

[dstauby]

I give up. Your ignorance is annoying. Your right and I'm wrong. The gold standard is perfect and there are no downsides to it.

Thus the reason every country in the world uses it.

[AFRIKTODAY]

Thus the reason why there are so many wars and conflicts all over the world! Duuuh!!! Are you kidding me! "Give me the control over a Nation's money and I care not who is at its helm!" Rotchild!! Central Banks? When was the last time did that organization get an audit? I am sure you know exactly where Bern Bernanke send the us money do you? Dude, sorry but you are a naive moron. You are utterly wrong and foolishly misguided! Would you have voted for the Bank Baillout? Too big to fail right? haha

[dstauby]

And we get to the bottom of your views. The good ole New World Order conspirarcy Theory.......

Like I said, your right and I'm wrong. The gold standard has no drawbacks and is perfect.

We went off it to serve the banking masters of the world........

Is elvis there with you? You also have Obama's kenyan birth certificate? Gotta go, my banking master is looking over my shoulder.

again, your right and I'm wrong. Gold Standard is perfect and we went off it cause it was just so perfect.

[AFRIKTODAY]

I thought you were leaving buddy! Conspiracy? Who is talking about conspiracies my friend? I have told you that were went off Gold because we couldn't service our obligation to the foreign Nations that had lent us money back in the 60s! We had to close the gold window in order to salvage enough species here in the US! I blamed inflationary monetary policies dude not freaking conspiracies! You eat your Keynesian nonsense now and die with it! GOLD has been money for 10,000 years of Human history!

[GaiusIuliusTaberna]

@AFRIKTODAY Did Lew Rockwell tell you that? Or was it Alex Jones? ...Perhaps David Ike?

The funny thing about human history, the last time we had an economy that wasn't based on fiat currency... was the middle ages. Not exactly the most booming time in world economic history. Then again I suppose it was if you happened to be a feudal lord. I know there are some people who'd like to see landed estates and slavery reinstated.

[AFRIKTODAY]

@GaiusIuliusTaberna

First of all, I am quite a bit "not" surprised to see the symbol of your nickname represented by none other than " Nicholas Machiavelli"! How representative!

Secondly, I have nothing but respect for Lew Rockwell, and I believe Alex Jones is a better source of information than the clown on TV!

Anyway, you re clearly displaying your total lack of monetary history by claiming that the last time commodity money was used was during the Middle Age!

Until 1971, we had hard money!

[shiatstain]

Krugmans boyfriend actually made a video for this. lol . Get a life man. You're obviously incapable of performing the simple task of searching Krugmans own articles on the matter. Fat and stupid are no way to go through life son.

[Zakdayak]

He was for cutting interest rates for new home construction, not speculation. Wyhen it became that by Aug 2002 he pointed it out in his column.

[shiatstain]

He exposed it? He called for a housing bubble numbnuts.

[semigotbanned]

@shitstain

of course he exposed it in 2005!

you goddamn troll, present your "evidence" or shut up

[sdkee]

Well there's dozens of quotes fro 2001/2002, but here's one:

KRUGMAN: "I'm a little depressed. You know, inventories, probably that's over, the inventory slump. But you look at the things that could drive a recovery, business investment, nothing happening. Housing, long-term rates haven't fallen enough to produce a boom there..."

Get the idea? Low interest rates = housing boom = solution to tech bust. He repeated this theme many times.

[semigotbanned]

first of all, where is this quote from? I'd like to take a look at the whole thing, you know ...

But anyway, even if he said that, after 9/11 hit, it was a deep recession. Housing projects were below normal/acceptable level. So it's only normal to lower - temporarily(!!) - the interest rates IN A TIME OF A RECESSION and utter pessimism. The emphasis is - as always - on the timing and size of policy, you know. There's no golden rule, it alway DEPENDS.

So I don't get what you're whining about.

[shiatstain]

Do a little research. Does everyone need to be spoonfed? Just a couple of keystroke and you'll see Krugman did advocate a housing bubble.

[semigotbanned]

@shitstain

you're a fucking dumb shit

when something is lagging behind, you want more, you want to stimulate it, it doesn't mean that you want to flood the whole place with it at all times

see it's like your mom was "advocating" for a little dumb shit kid (which is normal), but even I don't blame her for producing such a giant imbecile ...

[semigotbanned]

@shitstain

and of course your mom wanting a kid doesn't mean that she should shit 22 damn imbeciles, especially that she's not that good at it, I mean look at yourself...

size and timing of the policy is the key

[Zakdayak]

I just made a video addressing the Shiatstain and Libertarian view on Krugman. I plan to do a series on anarcho-capitalist bullshit.

[Zakdayak]

I made a video on this and how I think you're full of it, Shiatstain.

[shiatstain]

Please shut up Krugman. You supported a housing bubble as is very clear by your many tv statements and articles. Why is this man given a platform to spew his trash?

[Zakdayak]

What are yopu talking about? Citations please.

[shiatstain]

Do a search buddy. It's all over the place. the guy is a moron.

[semigotbanned]

shut up, fucking imbecile

he exposed the housing bubble as early as 2005

[Hellerium]

I remember reading that in one of his columns around that time. How prescient.

[sdkee]

@semigotbanned

Yeah he called it ... after he had been pushing for it all throughout 2001/2002.

You do understand that there is a time delay in the economy? That action you take now percolates through the system and appears as an effect later? Krugman advocated the housing bubble as the solution to the tech stock bubble bursting, preaching low interest rates, specifically to boost the housing sector.

Then 3-4 years later he called the bubble as if he hadn't helped cause it.

[army2k08]

Greenspan knew in 2000 that entitlement spending would balloon without the war on terror. In 2005-2006 he knew. In Jackson Hole he said something like, "these things don't end well". Greenspan bailed at the right time. Why wouldn't you hire a depression specialist like helicopter Ben, lol.

[healuv]

if it was the clearest bubble why didn't you Mr. Krugman see it?