Monday, March 02, 2009

It's all so complicated

Help me -- I'm confused. The personal savings rate has gone from negative to positive 5%. And yet, as savings are increasing, aggregate demand seems to be falling. How does that work? The solution, clearly, is to pay Government workers to build roads, and raise taxes. Brilliant!

If you want to see how deeply adrift the Obama administration is, check out this interview of Tim Geithner, who will go down as the worst Treasury Secretary of all time (you're off the hook, Paulson!). He honestly wants to return housing to bubble prices. Oh, and Obama will depress the economy further by reducing aggregate demand some more.

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