Back last fall, those of us who had sat at the feet of John Hicks and Charlie Kindleberger said two things that made many around us think that we are crazy:
That the enormous debt quantities the federal government was about to start issuing were unlikely to significantly push up interest rates.
That the federal government, if it managed the TARP money properly, might well wind up making a profit from it--buy low sell high after all.
The first of these has certainly come true. Now Dan Gross says that the second may as well:
Yet more evidence that the first generation of macroeconomists after Keynes really did have some idea of what they were talking about...