CAR: Excellent post. You’ve stated the position well, especially regarding asset values and liquidity. The latter is a major problem for the Krugmanites, who, when they attempt to assert a “Keynesian” approach, forget that Keynes would’ve moved in the opposite direction because of the massive debt and devalued/valueless assets.
Couldn’t agree more on reform, either, and I’d add entitlement reform and immigration reform to tax and trade reform. When we’re ready to have a serious, “adult” dialogue on these topics, well, then we’re ready to move ahead and fix them.
Sadly, I don’t see any politician, Dem or GOP, willing to step up and be honest with the American people on the enormousness of the problems confronting us. Kinda hard to get elected if you do. So the can gets kicked further down the road.
