From 1972: James Tobin on the "Ricardian Equivalence" of Government Debt and Taxes
Tyler Cowen: Timeo Stimulus Dona Ferentes

I Feel as Though I Should Buy Several More Houses...

Conforming mortgages look like amazing deals--especially if you think that the Federal Reserve won't be able to unwind its reserve expansion without some inflation.

Michelle Donley of Marketwatch:

30-year fixed mortgage rate hits record low: NEW YORK (MarketWatch) -- The national average interest rate on the benchmark 30-year, fixed-rate loan averaged 4.85% in the week ending Thursday, setting a new record low dating back to 1971, according to Freddie Mac's weekly survey. That rate is down from last week's 4.98% and the year-ago 5.85%. The 15-year fixed-rate loan averaged 4.58%, a record low dating back to 1991, down from the week-ago 4.61% and the year-ago 5.34%. The five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 4.96%, compared with 4.98% a week ago and 5.67% a year ago. One-year Treasury-indexed ARMs averaged 4.85% this week, down from last week's 4.91% and the year-ago 5.24%.

I feel like I should refinance my house, up the mortgage to 80%, and go out and buy two more houses. What's property selling for in Carmel these days, anyway?