Saturday, October 02, 2010

Surprising & Not So Surprising Article Of The Day

While Paul Krugman and other leftists argue for trade war with China and other policies to reduce the value of the U.S. dollar, Robert Reich somewhat unexpectedly (at least to me) express disagreement, pointing to how a weaker currency will reduce domestic purchasing power.

Meanwhile, John Taylor studies data that hint that low interest rates on Treasuries created by the Fed led to increased demand for riskier assets such as mortgage backed securities, something which in turn fueled the housing bubble.