Robert Shiller Says: Depression Lurks Unless There’s More Stimulus

I’m seeing a pattern here…..to solve our problems just print more money.

Click Here To Read Shiller’s Latest Piece – Depression Lurks Unless There’s More Stimulus

Article Introduction (Robert Shiller Via Bloomberg)

In the face of a similar Depression-era psychology today, we are in need of massive pump-priming again. We appear to be in a much better situation due to the stronger efforts to date. Still, there is a danger that, because of a combination of faulty economic theory and inadequate appreciation of human psychology, as well as deep public anger, we will not continue with such stimulus on a high enough level.

We desperately need to be persistent, keeping our government response adequate for the problem at hand on a sufficient scale and for sufficient time.

Additional Article Execerpts (Via Robert Shiller Via Bloomberg)

In our analysis of the current economic crisis, we conclude that the government should have two targets. One would be a joint fiscal-monetary policy target. The same kind of expansionary policies embodied in the government expenditure stimulus and tax cuts that are already being tried have to be done on a big enough scale and for a long enough time in the future.

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.

Click Here To Read Shiller’s Latest Piece – Depression Lurks Unless There’s More Stimulus