The Case Against the Bernanke-Obama Financial Rescue – NYTimes.com

Good read on an alternative view on the cause of the US banking crisis:

Their research is now widely cited as demonstrating that the overhang of household debt contributed to the slow pace of the recovery; one such citation came in the 2012 Economic Report of the President. Alan Krueger, a Princeton economics professor who wrote the report and was then the chairman of the president’s Council of Economic Advisers, said he considered their work important for suggesting that in areas where the economic recovery was slow, “that weak demand was the source of their economic problems, not credit market failures.”

Mr. Sufi said he was delighted that policy makers were listening. “It was always the goal for me to write research that would be policy-relevant,” he said. “People asked me what I wanted to be when I grew up, and I’m pretty sure I just wanted to be right.”

via The Case Against the Bernanke-Obama Financial Rescue – NYTimes.com.

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