Tuesday, December 18, 2007

The Conscience of a Liberal

Authors @ Google Talk on December 14, 2007
Paul Krugman is a professor of economics and international affairs at Princeton University, and the author or editor of 20 books and more than 200 professional journal articles. In recognition of his work, he has received the John Bates Clark Medal from the American Economic Association, an award given every two years to the top economist under the age of 40. The Economist said he is "the most celebrated economist of his generation."

1. Banks have an solvency issue not a liquidity issue
2. Krugman expects the housing market to continue to decline
3. There is a 50% chance of recession in 2008 as measured by the NBER
4. The dollar will continue to decline
5. The current housing crisis is like the S&L crisis of the early 1990s
6. He fully expects to see "debt deflation" as the economy moves into 2008 and beyond

See also "After the Money's Gone" NYT December 14, 2007