Wednesday, August 19, 2009

Subprime mortgages, the end of the recession, FDI, and health care

The Cleveland Fed presents us with ten myths about subprime mortgages.

Mark Thoma tells us when we'll know that the recession is over. I think there are two important themes: 1) it's tough to tell, and 2) it'll be pretty obvious when it's there.

Foreign investment in long-term US bonds are up. Although China is pulling out some of its money, the scare that everyone wants to pull out their money and ruin the US is unfounded. Sometimes, economics is telling people the obvious, when they want to believe the ludicrous.

The public health care option may be off the table. Back to high health care expenditures? Have congressional Republicans attempted to make any concessions at all? Bipartisanship seems to imply compromise.

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