CBO chief Donald Marron, a month ago : "[T]he message I would send is that we've gone from a period in which the fiscal deficits we were running in this country were large and not sustainable if they had persisted, to a situation in which, at least now and for next year, for several years going forward, deficits appear to be in a range that they're sustainable.”

While wage increases have failed to outpace inflation, real housing prices have nearly doubled in the past ten years. Astronomical housing prices made it impossible for many families to purchase a home. The market responded by introducing and aggressively marketing new mortgage "products" like ARMs (adjustable rate mortgages) and interest-only loans. These mortgages made monthly payments affordable, but their continuing affordability hinged on two things: 1) that interest rates would not rise and that 2) the housing market continued to sizzle.

We've noted that there's been a spate of establishment-types (and establishments) that have come out denying basic conservative talking points on economic policy. Now, here's new Fed Chairman Ben Bernanke, who says that a raise in the minimum wage will not cause inflation. BNA has the story. In a written response to questions from Rep. Ginny Brown-Waite (R-Fla.), Bernanke avoided addressing whether he thought the federal minimum wage should be raised, but he said the small number of workers affected would mean that overall labor costs and inflation would see little upward pressure.