Nobel Winner Pissarides is a looser

It's amazing how clueless and incompetent all Nobel laureates in economics are. See Pissarides, just another Keynesian bouffon who believes that the Greater Depression is the results of banks not lending for people to buy houses.

I think a 12 year old would understand that one cannot borrow indefinitely, and that the whole planet's economy cannot be based on buying houses on credit. But to Nobel laureates, the economy is a very simple and closed system, defined a single and simple rule: economies grow because people borrow money to buy houses, and since house prices always rise, people become rich. To Keynesians and Monetarists, this is the virtuous circle. To Austrian economists and to people in the real world, this is the circle of doom.
Oct. 29 (Bloomberg) -- The United States risks an extended period of low economic growth with little job creation and additional emergency measures being considered by the Federal Reserve aren’t likely to work, said Christopher Pissarides, the winner of this year’s Nobel Prize for Economics.
U.S. Federal Reserve Chairman Ben S. Bernanke said Aug. 27 the central bank would “do all it can” to sustain the economic recovery. Investors anticipate the Fed will carry out more so- called quantitative easing, a move that would pump additional money into the world’s largest economy.

“It cannot achieve much,” Pissarides said. “What we need is for banks to start lending more for house purchases and job creation.”
Just FYI Mr. Pissarides — you would know if you weren't living in your ivory tower — one should not borrow to create useless/wasteful jobs. One borrows to invest in wealth creation. Borrowing to spend is pure waste, is not sustainable, and leads to the mess we are in just now.

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