The most inopportune statement of the early aughts? This album cover by The Coup.
Second worst? This passage of Krugman’s (via The Atlantic blog) from 2002.
The basic point is that the recession of 2001 wasn’t a typical postwar slump, brought on when an inflation-fighting Fed raises interest rates and easily ended by a snapback in housing and consumer spending when the Fed brings rates back down again. This was a prewar-style recession, a morning after brought on by irrational exuberance. 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. [E.A.]
The seeds of tomorrow’s problems are planted by today’s solutions. My friends, I’m an idealist too. I can see myself supporting land reform in turn-of-century Russia, or the Korean Armistice, or the Louisiana Purchase. But disasters lie in wait like genies in the lamp eager for us to rub the world the wrong way. Cowards die a thousand deaths, but a nation must be circumspect in being brave on behalf of others because courage is often costly in ways unforseen. I console myself with the thought that whatever calamity is next to befall us likely is one which no one is worrying about. ”Sufficient unto the day is the evil thereof.”

