Dan Kuehn on Sectoral Disequilibrium and General Gluts
Hoisted from the Archives: Macroeconomics Is Not Hard

Duncan Black Is Shrill...

From Atrios:

Eschaton: Galtian Overlord Fail: Yes I'm on repeat...but the economy doesn't have to be like this. The people in charge have the knowledge, power, and ability to fix things. They have chosen not to.

And Joe Gagnon:

[O]ne of the biggest goals of QEI was to push down the mortgage rate to spark a refinancing boom to encourage households and enable households to reduce their expenditures and repair their balance sheets and be able to spend again. That worked not quite as well as we hoped because the administration’s program for getting underwater borrowers to borrow didn’t work and I think that’s a true disaster that has no excuse. I have nothing but incredible, there’s just, the blame the administration on not doing this is just incredible. This could have been a huge success. We got the lowest 30-year mortgage rates in history and we couldn’t take advantage of them to the extent that we could. We got about a trillion dollars in refinancing when we should have gotten two or three trillion dollars in refinancing.