Nobel Prize Winner And Stimulus Bull Extraordinaire Krugman Shifts Into Asset (De)Allocation
Reading anything by Krugman these days is all about getting an understanding of why drowning in infinite debt within a decade to finance stimulus after stimulus is really a pretty swell thing. Well, today the Nobel-prize winner has decided to go on pro-stimulus hiatus and instead is focusing on providing asset allocation advice. According to Bloomberg, "Nobel Prize-winning economist Paul
Krugman said he plans to sell some of his investments in Brazil,
Latin America’s biggest economy, on concerns that asset prices
“I am seeking to get out because of what’s happening. Not
that I see a crisis, but people seem to be loving it too much,”
Krugman told reporters in Sao Paulo.
Then again, Krugman does not see a crisis with the US headed straight into bankruptcy either: after all there is stimulus #X to be funded tomorrow, cost of capital be damned - China will be there to foerever buy 0% bills. So if the man is actually concerned about people "loving something too much" it very well may be time to listen. We only hope that this is not seen as investment advice by the New York Times - as Ben Stein knows all too well, the NYT's code of ethics is not too happy with such activities.