Depression Lurks Unless There is More Stimulus - Robert Shiller

[swag]

http://www.bloomberg.com/apps/news?pid=20601039&refer=columnist_shiller&sid=abXAaO4xI704

conclusion:

It is now time to stimulate demand. It is also time to repair the credit system. Those are the two targets that must be hit to get us out of the current economic slump, and to restore confidence. It will be costly to meet both of these targets, and it will require new legislation to give enhanced regulatory powers to deal with a greatly changed financial system, now in a systemic slump.

It is time to face up to what needs to be done. The sticker shock involved will be large, but the costs in terms of lost output of not meeting either the credit target or the aggregate demand target will be yet larger.

It would be a shame if we are so overwhelmed by anger at the unfairness of it all that we do not take the positive measures needed to restore us to full employment. That would not just be unfair to the U.S. taxpayer. That would be unfair to those who are living in Hoovervilles in Sacramento and Fresno, California, and elsewhere; it would be unfair to those who are being evicted from their homes, and can’t find new ones because they can’t find jobs. That would be unfair to those who have to drop out of school because they, or their parents, can’t find jobs.

It is now time to keep our eye on the ball and set clear targets to fix a system that broke when our animal spirits got out of bounds.

[redqueen]

1. Hoovervilles? Sorry, those are Bushvilles.

I'm just going to send them a little email to tell them so.

[Bluenorthwest]

2. Homeless encampments

What's in a name? A tent by anyother name would smell as musty.

[redqueen]

3. Accuracy. (nt)