Bruce Krasting

CBO – US Economy Set to Soar On Obamacare? Bruce Krasting

The Congressional Budget Office put conservative economic thinkers on their ass this week. In thisReport (pdf), the CBO concluded that the US budget deficit is about to collapse to insignificance. The improvement in the deficit outlook is so large that it has lead liberal thinkers to start calling for more stimulus spending. If it were not…

Bernanke Takes a “Leak” – Bruce Krasting

  How about Bernanke’s communication policy? The most important development for monetary policy in the last four years comes from a planted story in the Wall Street Journal on a Friday night. While I’m not surprised, I’m still disgusted. Press leaks to favorite journalists are no way to run this show.     The WSJ/Hilsenrath […]

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Hank P’s “Pinch” – The Fannie/Freddie Story – Bruce Krasting

Former Treasury Secretary Hank Paulson has been coming out of the closet and doing some talking, He spoke on Bloomberg the other day, (Link). He was asked about the record profit of $17B at Fannie Mae in 2012. He said: Follow the money. Find the profits!Liquidity is money. Regardless of where in the world that money…

Krugman Vs. Feldstein on Interest Rates and the Fed – Bruce Krasting

Paul Krugman has been taken shots at Martin Feldstein over this article (Link). Feldstein made the case that the Fed is keeping  interest rates artificially low – and sooner or later this will cause a problem.  The issue is whether the Fed is creating a new bubble. Feldstein says, “Yes”. Krugman says “N0″. A few lines from PK on…