I have to say though, Tettle isn't that far off the mark on many things here. His analysis of the crowding-out effect is almost accurate, forgetting that the FED is keeping interest rates - and thus the cost of borrowing money - low. And he's right on the fact that many people just walk away from their mortgages. I don't know about the federal program he's talking about, but its both the bank's fault, the lawyer's fault, and the homeowner's fault for buying that house.
And heck, here's the list of sources I had to read for class, if anyone is truly interested in an education in economics.
1. BERNANKE, Ben, “The Jobless Recovery”, a speech given in Pittsburgh on Nov. 6, 2003, The Federal Reserve Board of Governors.
2. NBER, End of the Great Recession, Business Cycle Dating Committee, at www.nber.org
3. FRIEDMAN, Milton. (no title) in Lives of the Laureates, Fourth edition, William Breit and Roger W. Spencer eds,. Cambridge: The MIT Press, 2004, pp. 65-77.
4. TOBIN, James. “Beginning with Keynes at Harvard,” in Lives of the Laureates, Fourth edition, William Breit and Roger W. Spencer eds., Cambridge: The MIT Press, 2004, pp. 95-113.
5. ROMER, Christina. “The Nation in Depression,” Journal of Economic Perspectives, Spring 1993, pp. 19-39.
6. ROMER, Christina. “Lessons from the Great Depression for the Recovery in 2009,” a speech given at the Brookings Institution, March 2009.
7. KRUGMAN, Paul. “How Did Economists Get It So Wrong?” The New York Times, Sept. 2, 2009.
8. WOODFORD, Michael. “Financial Intermediation and Macroeconomic Analysis,” Journal of Economic Perspectives, Fall 2010, pp. 21-44.
9. CABALLERO, Ricardo. “Macroeconomics after the Crisis: Time to Deal with the Pretense of Knowledge Syndrome,” Journal of Economic Perspectives, Fall 2010, pp. 85-102.
10. AUERBACH, Alan, William GALE, and Benjamin HARRIS. “Activist Fiscal Policy,” Journal of Economic Perspectives, Fall 2010, pp. 141-164.
11. International Monetary Fund, “Two-speed Recovery to Extend into 2011, Says IMF,” An interview with Olivier Blanchard, Chief Economist, Dec. 30, 2010.
12. BLINDER, Alan. “Quantitative Easing: Entrance and Exit Strategies,” Federal Reserve Bank of St. Louis Review, Nov./Dec. 2010.
13. BLANCHARD, Olivier. A video interview on the economic recovery. www.imf.org, 2010.