DeLong amok

Today as in 1902 the poor have to spend their incomes in order to buy their necessities. Today as in 1902 the middle class have to spend their incomes to buy their necessities and the conveniences they need in order to ensure themselves that they are not among the poor. And today the rich can spend their incomes or not, depending on current and expected future interest rates, the magic wand of the Confidence Fairy, the state of long-term expectation, the level of interest rates, the availability of financial markets to summon the Genie of Risk Tolerance, the Inflation-Expectations Imp, and other factors.

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