Economist Krugman Says World Avoided Second Great Depression

Economist Krugman Says World Avoided Second Great Depression

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KUALA LUMPUR, Malaysia Aggressive stimulus spending by governments helped the world avoid a second Great Depression but full economic recovery will take two years or more, Nobel Prize-winning economist Paul Krugman said Monday.

Krugman said the worst of the global crisis was over with economic and exports growth showing signs of stabilization. Still, recovery was likely to be "disappointing" as government spending wasn't sustainable in the long-run and unemployment rate still lagging behind, he told a two-day world capital markets conference here.

There isn't likely to be any "Phoen

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Well, here goes. Threads with economists in them tend to die very early here on ATS (they're just not sexy or exciting like talk show personalities) but I'm posting this article because I think the subject is worth attention.

Paul Krugman is a Nobel Prize-winning economist and on the faculty at Princeton University, so he really can't be dismissed all that easily.

Krugman, like many other economists, is once again reminding us that though a larger-scale catastrophe has been averted, it will take at least until 2010 before the whole economy rebounds.

Instead of griping that miracles haven't happened in 8 months (and therefore there has been no good at all from the stimulus packages) it is wise to look at the bigger, longer-term picture.

It seems counterintuitive to argue that more spending will get us out of a worldwide depression, but that's what many responsible economists have been saying and it appears they were right.

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Paul Krugman is a Nobel Prize-winning economist and on the faculty at Princeton University, so he really can't be dismissed all that easily.

Is this the same Paul Krugman that said:

"It's been said that a new bubble has been formed, well, it should be very small because nobody is investing much. We have the money to invest in another bubble, and sincerely, a bubble right now would help us a lot even though we would have to pay the price later. This would be a good time to invest in another bubble, and I think we have the resources to do so, and because there is a massive unemployment right now. There was a headline in a newspaper in the US last summer that said "the nation requires a new bubble to invest" and I think that is pretty much right." (in 2009)

and also said

"To fight this recession the Fed needs more than a snapback; it needs soaring household spending to offset moribund business investment. And to do that, as Paul McCulley of Pimco put it, Alan Greenspan needs to create a housing bubble to replace the Nasdaq bubble." (in 2002)

and

“Social Security as it is currently constituted is very efficient. We’re talking about a system that really works quite well.”

If he did say those things, I think it's PRETTY easy to dismiss anything he says.

and psst, yes, he said every word of that:

www.reddit.com...

www.nytimes.com...

His book: Conscience of a Liberal

[edit on 10-8-2009 by yellowcard]

well that is a comforting thought coming from someone who has been known to stretch the truth, propagandize, and downright lie like he has...I will believe it when the jobs return, the GDP jumps markedly, and when Washington does something to prevent incompetence from causing something like this to happen again...not when some dude says so.

Originally posted by Sestias


Well, here goes. Threads with economists in them tend to die very early here on ATS (they're just not sexy or exciting like talk show personalities) but I'm posting this article because I think the subject is worth attention.

Paul Krugman is a Nobel Prize-winning economist and on the faculty at Princeton University, so he really can't be dismissed all that easily.

Krugman, like many other economists, is once again reminding us that though a larger-scale catastrophe has been averted, it will take at least until 2010 before the whole economy rebounds.

Instead of griping that miracles haven't happened in 8 months (and therefore there has been no good at all from the stimulus packages) it is wise to look at the bigger, longer-term picture.

It seems counterintuitive to argue that more spending will get us out of a worldwide depression, but that's what many responsible economists have been saying and it appears they were right.

www.azcentral.com
(visit the link for the full news article)

Erm, what if he has an agenda? It's not like smart people with PHD's can't lie, like Jim Carrey's character in the movie Liar, Liar.

It is not just a cycle, it will not be like the 80s or 90s again, ever. Credit cards aren't coming back, I'm sorry.

The whole system is bust. People can choose to drink the kool-aid and hold on to what's left of the old system, or we can create a new, more authentic, much better system.

[edit on 10-8-2009 by Donnie Darko]

The economy is not better by any chance, the spinning machine is in full gear taking the numbers of unemployment data of half a million that is running out of unemployment to spin that is a recovery.

Contraction is not the same as recovery.

I got news for Krugman,

Call It a Depression Despite Wall Street Celebration

Yes people Washington is right, we are out of the recession and into a full blown depression, but hey don't let the cheerleaders in government knows that we know.

Goldman Sachs, Morgan Stanley, and J.P. Morgan Chase ~ 2008 bonus payments were substantially greater than the banks' net income."

Make no mistake about this ~ Government tax revenue is now the worst since the great Depression, the federal deficit has ballooned to a record $1.8 trillion, unemployment continues to skyrocket and we are obviously in a major Depression. The sooner Obama stops wishful thinking and faces this reality ~ the better.

William Gayle, co-coordinator of the Tax Policy Center, sums up Obama's dilemma ~ " If the economy doesn't recover soon, it doesn't matter matter what your social, economic and political agenda is ~ There's not going to be any revenue to pay for it ! "

The incredible shrinking economy

This Depression is just beginning " What does all this mean? It means the consumer is down-for-the-count. His credit lines have been cut, his home equity eviscerated, and his checking account swimming in red ink. That spells trouble for an economy that's 70% dependent on consumer spending for growth....which brings us to another interesting point.

Yes we know the secret but government have not found out yet.

www.economyincrisis.org...

Seriously, I've seen declarations "the recession is over" on Yahoo through all of 2009, possibly even as far back as 2008!

it's all just to make people spend more money.

reply to post by Donnie Darko


Exactly, but what the government is not telling that banks are making billions on fees from overdraft accounts gouging the consumer and tax payer more.

Guess what my friend, is not even more money to spend either.

Just because some committee picked this guy for a "prize" they award doesn't make what the person they chose to pick an "expert" or some kind of know it all.

Also this is the same guy that called the town hall protesters "racist"

And also said that we need to pump more money into the economy in order to avoid a "Lost Decade" like event. Let me remind you that Japan did exactly what he is suggesting we do.

Originally posted by marg6043
reply to post by Donnie Darko

 

Exactly, but what the government is not telling that banks are making billions on fees from overdraft accounts gouging the consumer and tax payer more.

Guess what my friend, is not even more money to spend either.

Don't even get me STARTED about overdraft.

I personally think all of these "experts" saying the recession is over and such are flat out wrong. I just don't see how you can have a "recovery" when you're still bleeding dry, the gov't is printing money like there's no tomorrow and the gov't wants to tax it's citizens to death through Healthcare and Cap and Trade. I guess google searches must be way down.

I think the Joker had it right:

Initial rescue of economic depression will satisfy immediate monetary needs, and debt accumulation in major national accounts worldwide will require long-term repayment while restricting future rescues.

These parasites that are held up as trusted experts know very well how close they are to losing everything...

They will literally say anything to prolong Ponzinomics.

Very soon, smug asshats like this will be running for their very lives..

Originally posted by Sestias Threads with economists in them tend to die very early here on ATS (they're just not sexy or exciting like talk show personalities)

Ain't that the truth! "The Sky is Falling" is a much more profitable head-line (or screen-ticker).

Originally posted by RolandBrichter
These parasites that are held up as trusted experts know very well how close they are to losing everything...

They will literally say anything to prolong Ponzinomics.

Very soon, smug asshats like this will be running for their very lives..

Or ... they will be working common man's jobs

Originally posted by EnhancedInterrogator

Originally posted by Sestias Threads with economists in them tend to die very early here on ATS (they're just not sexy or exciting like talk show personalities)

Ain't that the truth! "The Sky is Falling" is a much more profitable head-line (or screen-ticker).

The system is dead. It doesn't work anymore. It doesn't have to be a bad thing ya know. The system wasn't that great to begin with.

I wonder what Ron paul or Gerald Celente have to say about this?

reply to post by ziggy1706


Here's what Peter Shciff, who was Ron Paul's monetary policy adviser during his campaign has to say about the economy overall:

Thank for the vid So it seems, anyday of our lives no matter how good things are going, the feds will continue to bail out ONLY the big banks and auto makers. Another reason i choose NOT to do the cash for clunkers..becasue its misleading. Cash fro clunkers sounds like they will give yuo up to $4,500 but in reality, you musyt buy a new piece of recycled plastic crap...
How accurte is this guy, in the phillipiens was it? world reknown financial guy??? Someting ttells me, prices will still go up sooner or later..and because the federal reserve seems to have balanced everything it dosnt mean things wont catch up to us, form al the money being printed outta thin air, so to speak.

It is somewhat comforting that I see others raised the question that occurred to me.

This highly regarded economist is clearly echoing the 'perception' that he, and the opportunists want us desperately to believe.

With the monetization of debt happening world-wide (most notably here), and the singular Colossus, the supra-national banking cartel, virtually unchallenged in exercising its power, the thing that we have been brainwashed into calling 'wealth' is being funneled into the banking collective, and managed like a feudal fiefdom.

The comedy of our thrashing about and finding 'speakers' to enlighten us according to their wisdom is tragic. Economist are shaman of the financial age. The have taken the certainty of mathematics and made it into a shell game of illusion.

I wonder if the Austrian economic model is any less a contrivance at times.... fortunately I am not an economist. So I don't have to determine the solution to this equation. But someone should. Rather than announce it 'a la' edict from Greenspan (excuse me, SIR Greenspan.)

I'm afraid we are still in for a ride, and that they refuse to allow us to see the landscape is both frightening and infuriating. Too bad they use the information against us. If we all worked together there would be NO problem we couldn't overcome.

[edit on 10-8-2009 by Maxmars]