I've always believed that a speculative bubble need not lead to a recession, as long as interest rates are cut quickly enough to stimulate alternative investments. But I had to face the fact that speculative bubbles usually are followed by recessions. My excuse has been that this was because the policy makers moved too slowly - that central banks were typically too slow to cut interest rates in the face of a burst bubble, giving the downturn time to build up a lot of momentum.

You know that Republicans will yell about the evils of partisanship whenever anyone tries to make a connection between the rhetoric of Beck, Limbaugh, etc. and the violence I fear we’re going to see in the months and years ahead. But violent acts are what happen when you create a climate of hate. And it’s long past time for the GOP’s leaders to take a stand against the hate-mongers.

A message to progressives: By all means, hang Senator Joe Lieberman in effigy.

The French, unfortunately, actually believe what they say, and that has been very destructive.

The federal government is basically an insurance company with an army.

Not all private equity people are evil. Only some.

You really have to go searching desperately to find any contemporary examples of good, old-fashioned runaway inflation.