Big hat tip to Arnold Kling over at Econ log

Paul Krugman, writing in 2002:

To fight this recession the Fed needs more than a snapback; it needs soaring household spending to offset moribund business investment. And to do that, as Paul McCulley of Pimco put it, Alan Greenspan needs to create a housing bubble to replace the Nasdaq bubble.

From the comments section, comes this prescient quote from Shumpeter:

For the truouble is fundamentally not with money and credit, and policies of this class are particularly apt to keep up, and add to, maladjustment, and to produce additional trouble in the future

Kling later wrote a blog post defining some context here, but Krugman’s overall position of fiscal stimulus and market distortions to drag an economy from deep recession is looking more and more untenable.

Edit: For some reason the second link is scrolling straight to the comments of his post, just scroll up and you can read the blog post.