When depression economics prevails, the usual rules of economic policy no longer apply: virtue becomes vice, caution is risky and prudence is folly.

The key reason executives are paid so much now is that they appoint the members of the corporate board that determines their compensation and control many of the perks that board members count on. So it's not the invisible hand of the market that leads to those monumental executive incomes; it's the invisible handshake in the boardroom.

Unsustainable situations usually go on longer than most economists think possible. But they always end, and when they do, it's often painful.

For most Americans, economic growth is a spectator sport.

Asset bubbles have happened even without not-so-easy money. And, in a depressed economy, where alternative uses of money are not great, people are going to bid up the prices of profitable corporations and stuff like that.

Not all private equity people are evil. Only some.

I really think that people have to think safety; taking risks for higher yield is a bad idea once you're in late or latish middle age.