Crowding Out
The Bank of England’s Adam Posen Joins the Reanimation Caucus

OGMB "Slimes" John Cochrane

Hoisted from Comments: Reacting to other comments on Howard Kurtz's inaccurate and mendacious Paul Krugman profile, OGMB writes:

Martin Wolf Understands Economics: If posting an embarrassing old quote counts as sliming, then I'm happy to slime John "Bantam Cock" Cochrane once again...

Most of all, caveat emptor -- these are a matters for buyers and sellers, not regulators. Nobody else gets hurt if you buy a lousy mortgage pool. The government does not need to write a new rule every time someone buys a rotten tomato. Investors will demand the right transparency, complexity, and risk-sharing or monitoring of mortgage pools. That is, unless they get bailed out and learn to count on that instead! The history of the mortgage market is a grand story of bringing credit to people who need it, upon the removal of layer after layer well-intended but counterproductive "protective" regulation. -- John Cochrane, 2007

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