The economist John Maynard Keynes said that in the long run, we are all dead. If he were around today he might say that, in the long run, we are all on Social Security and Medicare.

The impact on the broader economy and financial markets of the problems in the subprime markets seems likely to be contained.

Nobody really understands gold prices and I don't pretend to understand them either.

Importantly, in the 1930s, in the Great Depression, the Federal Reserve, despite its mandate, was quite passive and, as a result, financial crisis became very severe, lasted essentially from 1929 to 1933.

The central bank needs to be able to make policy without short term political concerns.

Every effort needs to be made to try and offset the costs of Katrina and Rita by reductions in other government programs, especially those that are wasteful, duplicative and ineffective.

The GSEs are adequately capitalized. They are in no danger of failing.