Have you read the reviews on Krugman's new book yet? [ Ссылка ]
We are looking at a housing cycle that we have never seen before. The real estate prices from 2000 to the present is unprecedented. If history is any guide, then housing prices will have a long way to fall. This is a hit to economy that is as big as the tech bust. We don't know how fast this will come on. A serious slowdown is likely, and a recession is not out of the question. This is really scary. If we have a loss of foreign investors on top of the housing bubble, then things could be significantly worse.
The tax cuts may have added a little demand, but it could have been better. Jobs are growing, but not as fast as during the 1990s. Real wages haven't gone up. Most people's prosperity was due to the housing boom, and the Bush administration had nothing to do with it. We need to help the middle class and poor people. Minimum wage is at its lowest real level in 50 years. The costs are quite low, and it might help poor people. Some pump priming is a definite must.
