Alstry DISAGREES with Mish?????
First, Mish has an excellent blog today on his disagreement with Nobel Prize winning economist Paul Krugman. For the most part, I think Mish is dead on and my disagreement is more on degree rather than substance.
Here is his blog and a good read for those interested.....
My disagreement is on the following relatively minor point......
Nonetheless let's try it Krugman's way looking at what industries were directly impacted by the [credit]bubble.
Direct Impact of Housing Slowdown
Trucks and SUVs
City, State, Local Government Spending
Little Impact of Housing Slowdown
It is my positions that Health Care and Education were substantially impacted by the credit boom. Huge dollars flowed into both as a result of donations from gains directly caused by the easy credit environment. Health care premiums skyrocketed for similar reasons and people could afford to pay due directly to the credit boom. Many endowments were funded directly resulting from the credit boom.....
It is my belief that the impact on Health Care and Education will be just as profound as other sectors....it is just that the timing will be a bit later......
You will see the impact really start to kick in once the New Year starts........Madoff is a good first step demonstrating the negative impact on endowments, charitable medical causes, ect.........
Overall..... an excellent blog by Mish and a good read for those trying to understand the problem......even if I don't fully agree with his post.