Shorter Martin Feldstein:
-More Fed regulation of financial institutions is needed;
-The national fall in house prices is unprecedented ;
-The biggest risk is paralysis of the credit markets.
-Any recession will last longer and be more painful than past downturns;
-Fed will not be able to end the recession as it did previously by turning off tight monetary policy.
Amazing how some people who you think have an ideological rigidity can surprise you sometimes . . .
Our Economic Dilemma
WSJ, February 20, 2008; Page A15