Greg Mankiw writes:
More Spending Stimulus Skeptics... Kevin "Dow 36000" Hassett:
We are in the midst of a crisis caused by so many financial institutions borrowing too much money. Somehow, a critical mass of policy makers now believes that the correct response is for the U.S. government to borrow too much money...
Can anybody tell me what the argument is going to be? Is it that the U.S. government's borrowing of an extra 6% of a year's GDP is going to cause the U.S. government to default on its debt? That is the only way that one could try to make sense of Hassett--and that is an absurd claim.
Shame on Bloomberg for not having dumped Hassett as a columnist before this.