Bubblers and Curve Benders

I hear a lot of comments on the blog about why economists supported Bubble behavior and then try to find ways round the Curve Bending problem.

Bubble behavior and the Keynesians stimulus theory use the same format, make long term commitments without any plan about how short term management can meet the implied constraints. Curve Benders are those who have to work the short term constraints in a long term comittment.

Pelosi and the Obamathons are engaged in dangerous Bubble behavior, planning large programs and relying on Curve Benders to fix things down the road. Lil Bush was a Bubble maker, as was Reagan. Bill Clinton was a Curve Bender.

We have to work the problem in reverse. First, plan Curve Bending technology. When you have good Curve Bending technology, then push for a Bubble. That is how Stimulus is supposed to work.