« Disappointing First Quarter GDP Growth | Main | links for 2011-04-28 »

Thursday, April 28, 2011

Joe Stiglitz and Joe Gagnon Debate QEII

This comes via Mike Konczal (who has additional comments):

Mike adds:

Side note: Gagnon earlier in his talk said that “one of the biggest goals of QEI was to push down the mortgage rate to spark a refinancing boom to encourage households and enable households to reduce their expenditures and repair their balance sheets and be able to spend again. That worked not quite as well as we hoped because the administration’s program for getting underwater borrowers to borrow didn’t work and I think that’s a true disaster that has no excuse. I have nothing but incredible, there’s just, the blame the administration on not doing this is just incredible. This could have been a huge success. We got the lowest 30-year mortgage rates in history and we couldn’t take advantage of them to the extent that we could. We got about a trillion dollars in refinancing when we should have gotten two or three trillion dollars in refinancing.” I haven’t heard this critique before and I thought it was really interesting.

    Posted by on Thursday, April 28, 2011 at 01:44 PM in Economics, Housing, Monetary Policy | Permalink  Comments (32)


    Comments

    Feed You can follow this conversation by subscribing to the comment feed for this post.