Calculated Risk: Feldstein on the Recession
Reading the Calculated Risk blog often equates to some rather deep economics, but this particular post does a great job of explaining why the current recessive trends don't mirror that of the 70's and 80's, because at the end of the day, so much has to do with the fed TARGET interest rate. (Remember the fed doesn't set the rate, it controls the money supply that results in the rate)
So what this calculated risk post does in analyze the WSJ and the NYT economics columnists and their general agreement that housing prices wont pop back as was seen from the high interest rates (and their reductions) in the 70's and 80's as the housing market simply cant respond to the Fed's current fire sale.
