August 10, 2019

An Avoidable Recession

The 2007-2009 recession was a disaster. Some lives were ruined while far more were disrupted. An entire generation endured a half-decade of underemployment in the pathetic pseudo recovery that followed. The Great Recession didn’t have to happen, the Fed could have followed the Greenspan playbook and “got out ahead of the markets” (even Trump got it at the time). The Fed could have done more than expected and reshaped expectations. It could have done its job. We can at least say that 2008 was a relatively challenging period. The subprime housing crisis stressed an over-optimized financial system. Strong growth in… Read More