John At The Center

Good to see some articles taking a supporting position of Paulson (see this from a few weeks ago: http://www.techspill.com/fin20/revisionist-history-and-hank-paulson.html)

Thanks to Martin Wolf for highlighting the Godley et al paper.

Their argument seems right to me. Absent a large savings surplus in Asia and the oil exporters, rising US rates would have choked off the housing bubble much earlier. High long-term rates aren’t conductive to rising home prices — and without rising home values it is hard to turn a home into an ATM.

http://blogs.cfr.org/setser/2009/01/09/the-global-savings-glut-and-the-current-crisis/

I was glad to see this.