[quote]Brian: You crack me up. Krugman has become more and more hysterical as time has passed (largely because he’s been shown to be more and more wrong as time has passed) and he’s largely nothing more than a Keynesian hack at this point, parroting on ad nauseum about the same failed policies.[/quote]
I don’t think that Krugman has been shown to be wrong at all, let alone more wrong than any right-wing talking face of your choice.
Right now the problem is most definitely that the market sees a high likelihood of a double dip recession. The market is NOT showing any loss of confidence in the US credit rating (otherwise, interest rates on US sovereign debt would be trending up, not down). Instead, it’s showing concern that the fledgling recovery is about to be replaced by a double dip, and the government is all too willing to pursue policies which would be more likely to cause that double dip than to prevent it.
At the same time, I’d like to reiterate my belief that the US stock market is undervalued. And no, it’s not cognitive dissonance. The valuation of the US stock market is largely psychological. Right now, the market is more undervalued than ever.
