Financial crises require governments.
Monetary policy itself cannot sensibly be directed at reducing imbalances.
The choice is between which mistake is easier to correct: underdoing it or overdoing it.
The plausible outcomes range from the gradual and benign to the more precipitous and damaging.
Most consequential choices involve shades of gray, and some fog is often useful in getting things done.
The government can help, but we need to make this transition now to a recovery led by private investment, private.
The substantial uncertainty about the path of asset price movements going forward necessarily reduces the case for altering policy in advance of the move.
I think we're not going to preserve Fannie and Freddie in anything like their current form. We're going to have to bring fundamental change to that market.
This crisis is not simply a more severe version of the usual business cycle recession, the typical downturn in which economies ultimately adjust and stabilize.
Never before in modern times has so much of the world been simultaneously hit by a confluence of economic and financial turmoil such as we are now living through.