Jump To » Mobile / Confirm Them / Right Shelf / Sports / State Blogs / About / Contact / Help / Posting Rules / Conservative Book Club / Human Events
Economics 101 (The Class Continues)
By Pejman Yousefzadeh Posted in Economy — Comments (1) / Email this page » / Leave a comment »
It is nice to see that Greg Mankiw is taking the New York Times to task for its confused commentary on "imbalances in trade and other global transactions" that should presumably keep Americans up at night. As Mankiw points out, if you argue in favor of a higher savings rate, you are also arguing in favor of a weaker dollar, which would only serve to amplify those "imbalances."
Professor Mankiw might have mentioned as well that "imbalances in trade and other global transactions" is yet another way of terming the trade deficit. And we really have better things to do than to worry about the trade deficit.
Like the imploding mortgage securities sector, the tightening of credit, and the loss of confidence that is happening at this moment in markets around the world.
Countrywide, the largest volume mortgage lender in the country is down 12% in overnight trading as it announced huge problems. The ECB loaned out more Euros today to its member banks than immediately after 9/11.
Dow was down almost 400 points. See info at my website... too much to reproduce here.
cheers... we muddle through.
The World's Ruined