Financial Crises Require Governments.

This Crisis Is Not Simply A More Severe Version Of The Usual Business Cycle Recession, The Typical Downturn In Which Economies Ultimately Adjust And Stabilize.

There Is A Basic Lesson On Financial Crises That Governments Tend To Wait Too Long, Underestimate The Risks, Want To Do Too Little. And It Ultimately Gets Away From Them, And They End Up Spending More Money, Causing Much More Damage To The Economy.

Monetary Policy Itself Cannot Sensibly Be Directed At Reducing Imbalances.

The Recognition That Things That Are Not Sustainable Will Eventually Come To An End Does Not Give Us Much Of A Guide To Whether The Transition Will Be Calm Or Exciting.

The World Is Likely To View Any Temporary Extension Of The Income Tax Cuts For The Top Two Percent As A Prelude To A Long-term Or Permanent Extension, And That Would Hurt Economic Recovery As Well By Undermining Confidence That We're Prepared To Make A Commitment Today To Bring Down Our Future Deficits.