@14:10

I have done it again. I went to sleep without pushing the button on the last post of the day.

http://www.nytimes.com/roomfordebate/2011/08/16/a-chance-to-reshape-the-economy/the-problem-home-ownership

Adam S. Posen is a senior fellow at the Peterson Institute for International Economics.

We need to reshape the U.S. economy to stabilize real estate prices over future cycles. Our patchwork of policies fetishizing home ownership and over-encouraging mortgage debt fed the bubble, deepened its aftermath, and cutback state and local revenue at the wrong time. It makes workers less mobile, increasing unemployment. Our policy bias toward home ownership by debt also feeds inequality, low savings and even global warming (really). The current overhang of bad mortgages limits our recovery, but resolving those problems presents the opportunity for radical reform:


http://krugman.blogs.nytimes.com/2011/08/18/bearded-american-economists-to-the-rescue/
" August 18, 2011, 4:58 am

Bearded American Economists to the Rescue

Bloomberg:

Bank of England policy maker Adam Posen’s 11-month push for more stimulus is now shaping the debate among officials as they consider whether the U.K. needs more quantitative easing to fight the danger of Europe’s crisis.
With no policy maker seeking an interest-rate increase after Spencer Dale and Martin Weale switched votes, the discussion on the Monetary Policy Committee has shifted toward Posen’s agenda

Go Adam! Adam Posen studied Japan during the 1990s, and was a member of the club (also including yours truly) that worried that Japan was an omen for other advanced countries."   P.K.

Adam Posen's other hat is the policy committee  of The British central bank.
At a guess The Bank of England invested heavily in CDOs.  Posen's recommendation in 'room for debate' is in defence of the English investment.
Those bonds are defaulted.  It is time for the fire-sale.