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Paul Krugman says we have averted a second Great Depression, and why? The different role played...

Paul Krugman says we have averted a second Great Depression, and why? The different role played by government. "Ronald Reagan was wrong: Sometimes the private sector is the problem, and government is the solution."
Comments (22)
  • optionsgirl
    , contributor
    Comments (5044) | Send Message
     
    Paul Krugman is the biggest Obama cheerleader out there. So glad he won a Nobel Prize. If Krugman says we averted a depression, you can be sure we didn't.
    10 Aug 2009, 11:31 AM Reply Like
  • ari5000
    , contributor
    Comments (365) | Send Message
     
    We haven't 'averted' s--t. We just piled on a ton of debt and consumed today what would have been consumed tomorrow. And left the future with the bill. It's the great Ponzi.

     

    Geithner's big plan will involve the perpetual request to increase the national debt ceiling -- that's essentially his entire strategy.

     

    I can pay all my bills today too if I borrowed a million dollars. Politicians are the same as Wall Street traders -- they all need to generate big time short term results -- even if it means doing things that are detrimental four (or eight) years from now.

     

    What does Obama care about more: America, or his polling numbers? Be honest.
    10 Aug 2009, 11:35 AM Reply Like
  • John Mylant
    , contributor
    Comments (284) | Send Message
     
    I am by no means a fan of government intervention but I do know it plays a role in helping keep balance between greed and protection for the little man. Sometimes it is needed. Sometimes the private sector is part of the problem and the government can be part of the solution but never is it as defined as this gentleman make sit out to be. He is wrong.
    10 Aug 2009, 11:36 AM Reply Like
  • Schweizer
    , contributor
    Comments (276) | Send Message
     
    Lets see if he even has a job in a year when the SP500 is under 500.
    10 Aug 2009, 11:37 AM Reply Like
  • CetinGoScrewYourself
    , contributor
    Comments (4) | Send Message
     
    "... we appear to have averted the worst: utter catastrophe no longer seems likely. And Big Government, run by people who understand its virtues, is the reason why."

     

    So many things wrong in two sentences. I actually had some bile come up my throat after reading that.

     

    Has the banking industry (and GOV oversight) inadequacies/practices that got us into this mess been reformed? NOPE
    Has the FED stopped pumping over $200B/month into the economy to shore it up? NOPE
    Is industry creating new jobs? NOPE
    Is the Gov showing any signs of budgetary/fiscal responsibility? NOPE

     

    Conclusion: The worst is over!
    10 Aug 2009, 11:39 AM Reply Like
  • elliotz
    , contributor
    Comments (251) | Send Message
     
    Yea Krugman is someone we should all be listening too!(sarcasm) They guy is a joke and I dont know why he still thinks he is relevant, probably because Obama told him "Krug you the man".
    10 Aug 2009, 11:41 AM Reply Like
  • nelman
    , contributor
    Comments (21) | Send Message
     
    Mr. Krugman thinks that the government is the source of prosperity, what a clown...this is the same guy who thinks taxes are too low and ATM fees are oppressive.

     

    God I miss Ronald Reagan.
    10 Aug 2009, 11:44 AM Reply Like
  • Archman Investor
    , contributor
    Comments (2350) | Send Message
     
    The problem with people like Krugman and other elitists:
    They are not average Americans.
    The do not know what it means to work hard, to worry about life's issues other than ones health. Nothing.
    To them, their absurd statements are just that: absurd.
    This is play time for them. They make their statements and if they are wrong, so be it. There is no accountability.
    Does Krugman even give a second thought to the debts now owed, to the burdens being placed on further generations.
    For goodness sakes no. His life, the life of his family and heirs is now set.
    They are the elitist class. They will never want to for anything and will never know the struggles of average Americans.
    10 Aug 2009, 11:45 AM Reply Like
  • pierre+cpa
    , contributor
    Comments (23) | Send Message
     
    blog.mises.org/archive...
    Krugman did cause the housing bubble.

     

    Why do we still hear from this guy?
    10 Aug 2009, 11:48 AM Reply Like
  • Vox Rationalis
    , contributor
    Comments (1388) | Send Message
     
    "The point is that this time, unlike in the 1930s, the government didn’t take a hands-off attitude while much of the banking system collapsed. And that’s another reason we’re not living through Great Depression II."

     

    How can you fine folks argue that this is not true?
    10 Aug 2009, 11:51 AM Reply Like
  • doubleguns
    , contributor
    Comments (7874) | Send Message
     
    YH, get your smoker going.
    10 Aug 2009, 11:51 AM Reply Like
  • Mr. Ed, Jr.
    , contributor
    Comments (745) | Send Message
     
    I guess he forgot that it was government that caused so much of the problem....Congress doing social engineering through Freddie & Fannie, while quietly changing regulations to allow Wall Street and banks to get ridiculously leveraged with toxic financial toys, the Fed with their magical bubble-blowing machine, and on and on.

     

    And he thinks that by wasting trillions of taxpayer dollars buying up worthless morgages, broke banks and auto companies, political payoffs disguised as stimulus, and now on subsidized car purchases, government has "saved" us.

     

    God save us from these elite, liberal fools.
    10 Aug 2009, 12:04 PM Reply Like
  • Gary Jakacky
    , contributor
    Comments (2392) | Send Message
     
    Krugman is such a useful idiot, as Stalin used to say. The whole bubble was caused by the FED keeping interest rates TOO low for TOO long...primarily so congress could finance its deficits cheaply. And this is a private sector problem? :)
    10 Aug 2009, 12:11 PM Reply Like
  • CetinGoScrewYourself
    , contributor
    Comments (4) | Send Message
     
    IMHO, I think the Gov did have to do something, but I would argue they went too far as opposed to arguably doing too little during the 30's... I've got a bad taste in my mouth about how they chose which banks would fail, and which ones were "too big to fail". The Gov's intervention stinks of collusion and back room deals that had a tinge of politics and mutual "back scratching". But that's just my opinion.

     

    Krugman's assumption though is that we are passed the worst... I don't buy it yet. We need to see some positive job growth, realistic market valuations, and improved banking/financial oversight, otherwise I think we (as a nation) are all just fooling ourselves. Perhaps the biggest issue right now is trust: I don't trust much of what the Gov is saying about the economy, what the Ratings agencies have to say about anything, what the Politicians are saying... etc.

     

    We have too few data points to come to such a wild conclusion as to say that the worst is passed us or that we have dodged a recession.

     

    On Aug 10 11:51 AM Vox Rationalis wrote:

     

    > "The point is that this time, unlike in the 1930s, the government
    > didn’t take a hands-off attitude while much of the banking system
    > collapsed. And that’s another reason we’re not living through Great
    > Depression II."
    >
    > How can you fine folks argue that this is not true?
    10 Aug 2009, 12:25 PM Reply Like
  • darkpool
    , contributor
    Comments (27) | Send Message
     
    Governments and Religions are in most instances the sources of all evils. Just look back at history.
    10 Aug 2009, 12:33 PM Reply Like
  • Mad_Max_A_Million
    , contributor
    Comments (1175) | Send Message
     
    Cannot listen to this guy talking nonsense. Thanks to Cable TV, we have a 30 second Skip button on the DVR. I have no idea what caused this guy, that he could be so far off in left field and still be proud of it.
    10 Aug 2009, 01:02 PM Reply Like
  • Vox Rationalis
    , contributor
    Comments (1388) | Send Message
     
    On Aug 10 12:25 PM CetinGoScrewYourself wrote:

     

    > I would argue
    > they went too far as opposed to arguably doing too little during
    > the 30's...

     

    Wait - there's an argument about whether the government did enough or not enough during the 1930s? Really?

     

    > I've got a bad taste in my mouth about how they chose
    > which banks would fail, and which ones were "too big to fail".

     

    The perhaps you agree with Krugman: "You can argue (and I would) that the bailouts of financial firms could and should have been handled better, that taxpayers have paid too much and received too little. Yet it’s possible to be dissatisfied, even angry, about the way the financial bailouts have worked while acknowledging that without these bailouts things would have been much worse."

     

    > Krugman's assumption though is that we are passed the worst...
    > We have too few data points to come to such a wild conclusion as
    > to say that the worst is passed us or that we have dodged a recession.

     

    Point of fact, nobody's claiming we dodged a recession. But more importantly, if you don't think the danger of a far more significant recession/depression is lower today than it was late last year, you really don't understand what was happening then.
    10 Aug 2009, 01:50 PM Reply Like
  • Wisdom vs. Information
    , contributor
    Comments (449) | Send Message
     
    thank you, Mr Krugman, for your tireless efforts to prove that the Nobel Prize is a joke. keep up the good work. government is never as fast or as efficient as private sector; because you propped up bad companies run by incompetents and protected capital owned by fools the economy will be weaker as we move forward-- not to mention that collecting the taxes and administering the programs lowers total econmic utility! all you have done is protected failure
    10 Aug 2009, 02:25 PM Reply Like
  • Whippet
    , contributor
    Comments (498) | Send Message
     
    Lol- thanks for bringing back the memories!
    This article will be a fantastic read in a few years- it reminds me of a book I saw called God's Timetable for the 1980s. About how Gorbachev was the Antichrist, and there would be nuclear war in 1986. Quite amusing read in 1998...

     

    On Aug 10 11:51 AM doubleguns wrote:

     

    > YH, get your smoker going.
    10 Aug 2009, 02:40 PM Reply Like
  • Mudduckk
    , contributor
    Comments (98) | Send Message
     
    Question: when is a "V" not a "V"? Answer: When it is a double V...er... a "W". Uh! Don't count yer eggs before they've hatched. Krug, how do you like your crow? Baked or fried?
    10 Aug 2009, 03:15 PM Reply Like
  • herbert hoover
    , contributor
    Comments (2005) | Send Message
     
    Hey...Who owns the Fed genius? It ain't the government; it's the private sector.

     

    On Aug 10 12:11 PM cyclingscholar wrote:

     

    > Krugman is such a useful idiot, as Stalin used to say. The whole
    > bubble was caused by the FED keeping interest rates TOO low for TOO
    > long...primarily so congress could finance its deficits cheaply.
    > And this is a private sector problem? :)
    10 Aug 2009, 05:30 PM Reply Like
  • Poor Texan
    , contributor
    Comments (3529) | Send Message
     
    Humpty Dumpty sat on a bank,
    Humpty Dumpty fell in a tank,
    All the King's horses a**es and all the King's men
    Have destroyed the economy for their own gain.

     

    I don't see any way to unscramble the omlette we're creating.
    10 Aug 2009, 06:47 PM Reply Like
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