Globalization has rendered the world increasingly interdependent, but international politics is still based on the sovereignty of states.

It is credit that matters, not money (in other words, monetarism is a false ideology).

The US needs a cap and trade system with auctioning of licenses for emissions rights. The revenues from these auctions can be used to launch a new, environmentally friendly energy policy. That would be yet another federal program that could help us to overcome the stagnation.

If the bubbles contain a misconception, as they always do, then it can't be maintained forever.

In the case of a meltdown, the regulatory authorities may find themselves obliged to step in to preserve the integrity of the system. It is in that light that the authorities have both a right and an obligation to supervise and regulate derivative instruments.

The concept of a general equilibrium has no relevance to the real world (in other words, classical economics is an exercise in futility).

There is a well-established conviction that the central banks always do what is necessary to keep the system going and then afterwards you then take care of the legal aspects. In a crisis, you simply do not have time to think about such concerns for too long.