Wednesday, September 8, 2010

Robert Shiller on a Double Dip Recession

Robert Shiller is the guy who called the bubble with his book "Irrational Exuberance" and who warned about the housing bubble. He's somebody you would think politicians and central bankers would be paying close attention to. But you would be wrong. He, like Paul Krugman, is generally ignored. Instead, the fools who said things like "Dow 36,000" back when it was 12,000 and heading up before the crash or the the economists like Ben Bernanke who assured everybody that the subprime mortagage market meltdown was "contained" and not a threat to the economy are the ones with the levers of power and get the ears of politicians and central bankers...

Notice that Shiller says (a) there needs to be a stimulus and (b) it must be focused on jobs. Well... this week Obama rolled out his stealth stimulus plan as tax cuts and doesn't target jobs. In other words, Obama is ignoring the experts who really, really know what is going on, what needs to be fixed, and have clear ideas of how to fix it. Tragic!

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