Krugman heralds start of next depression

[briansd1]

[quote=AK]False dichotomy.

Is it sustainable *with* government action?

Is the government action needed to sustain indications of a recovery sustainable itself?

Not that I’m against a stimulus … but I do think we need to be asking different questions.[/quote]

Yes, but those questions would be more long term.

We need to get through the current hardship.

The Dow well under 10,000.

– How much lower would stocks have fallen without all the bailouts?
– How much economic output would have been sacrificed with zero government intervention.
– How much more wealth would have been lost?
– And how much poorer of a society would we all have been?

[Arraya]

There is a school of though that bubble wealth is just an illusion and it’s really just multiple claims on the same wealth pie. When the bubble collapses claims are extinguished. It’s kind of a trip to understand but it was never really there in the first place. The constant injections of debt and printed cash is just a frantic attempt at trying to maintain an illusion.

[Arraya]

There is a school of though that bubble wealth is just an illusion and it’s really just multiple claims on the same wealth pie. When the bubble collapses claims are extinguished. It’s kind of a trip to understand but it was never really there in the first place. The constant injections of debt and printed cash is just a frantic attempt at trying to maintain an illusion.

[Arraya]

There is a school of though that bubble wealth is just an illusion and it’s really just multiple claims on the same wealth pie. When the bubble collapses claims are extinguished. It’s kind of a trip to understand but it was never really there in the first place. The constant injections of debt and printed cash is just a frantic attempt at trying to maintain an illusion.

[Arraya]

There is a school of though that bubble wealth is just an illusion and it’s really just multiple claims on the same wealth pie. When the bubble collapses claims are extinguished. It’s kind of a trip to understand but it was never really there in the first place. The constant injections of debt and printed cash is just a frantic attempt at trying to maintain an illusion.

[Arraya]

There is a school of though that bubble wealth is just an illusion and it’s really just multiple claims on the same wealth pie. When the bubble collapses claims are extinguished. It’s kind of a trip to understand but it was never really there in the first place. The constant injections of debt and printed cash is just a frantic attempt at trying to maintain an illusion.

[AK]

[quote=Arraya]There is a school of though that bubble wealth is just an illusion and it’s really just multiple claims on the same wealth pie. When the bubble collapses claims are extinguished. It’s kind of a trip to understand but it was never really there in the first place. The constant injections of debt and printed cash is just a frantic attempt at trying to maintain an illusion.[/quote]

OK, finally something that makes sense 🙂

[AK]

[quote=Arraya]There is a school of though that bubble wealth is just an illusion and it’s really just multiple claims on the same wealth pie. When the bubble collapses claims are extinguished. It’s kind of a trip to understand but it was never really there in the first place. The constant injections of debt and printed cash is just a frantic attempt at trying to maintain an illusion.[/quote]

OK, finally something that makes sense 🙂

[AK]

[quote=Arraya]There is a school of though that bubble wealth is just an illusion and it’s really just multiple claims on the same wealth pie. When the bubble collapses claims are extinguished. It’s kind of a trip to understand but it was never really there in the first place. The constant injections of debt and printed cash is just a frantic attempt at trying to maintain an illusion.[/quote]

OK, finally something that makes sense 🙂

[AK]

[quote=Arraya]There is a school of though that bubble wealth is just an illusion and it’s really just multiple claims on the same wealth pie. When the bubble collapses claims are extinguished. It’s kind of a trip to understand but it was never really there in the first place. The constant injections of debt and printed cash is just a frantic attempt at trying to maintain an illusion.[/quote]

OK, finally something that makes sense 🙂

[AK]

[quote=Arraya]There is a school of though that bubble wealth is just an illusion and it’s really just multiple claims on the same wealth pie. When the bubble collapses claims are extinguished. It’s kind of a trip to understand but it was never really there in the first place. The constant injections of debt and printed cash is just a frantic attempt at trying to maintain an illusion.[/quote]

OK, finally something that makes sense 🙂

[briansd1]

[quote=Arraya]There is a school of though that bubble wealth is just an illusion
[/quote]

[quote=Arraya]
The constant injections of debt and printed cash is just a frantic attempt at trying to maintain an illusion.[/quote]

That’s a good point, Arraya.

But what about the economic activities that were made possible thanks to the bailout/stimulus programs? They would not have been possible without government support.

Sure, we are front-loading and borrowing from the future, with the assumption that once the economy is fully recovered, we can better afford to “pay back”.

[briansd1]

[quote=Arraya]There is a school of though that bubble wealth is just an illusion
[/quote]

[quote=Arraya]
The constant injections of debt and printed cash is just a frantic attempt at trying to maintain an illusion.[/quote]

That’s a good point, Arraya.

But what about the economic activities that were made possible thanks to the bailout/stimulus programs? They would not have been possible without government support.

Sure, we are front-loading and borrowing from the future, with the assumption that once the economy is fully recovered, we can better afford to “pay back”.

[briansd1]

[quote=Arraya]There is a school of though that bubble wealth is just an illusion
[/quote]

[quote=Arraya]
The constant injections of debt and printed cash is just a frantic attempt at trying to maintain an illusion.[/quote]

That’s a good point, Arraya.

But what about the economic activities that were made possible thanks to the bailout/stimulus programs? They would not have been possible without government support.

Sure, we are front-loading and borrowing from the future, with the assumption that once the economy is fully recovered, we can better afford to “pay back”.

[briansd1]

[quote=Arraya]There is a school of though that bubble wealth is just an illusion
[/quote]

[quote=Arraya]
The constant injections of debt and printed cash is just a frantic attempt at trying to maintain an illusion.[/quote]

That’s a good point, Arraya.

But what about the economic activities that were made possible thanks to the bailout/stimulus programs? They would not have been possible without government support.

Sure, we are front-loading and borrowing from the future, with the assumption that once the economy is fully recovered, we can better afford to “pay back”.

[Author]

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