Krugman heralds start of next depression

[Nor-LA-SD-guy]

[quote=gandalf]Things aren’t going to collapse, but I don’t expect anything to improve anytime soon either. We’re looking at stagnation, slow and sideways, fits and starts. It’s going to take a long time for things to unwind.

Keynesian fiscal / monetary policy can play a role in buffeting business cycles, but the government (both CA and Feds) expanded spending wildly during the good years — and cut taxes to boot. (Fucking retards.)

It’s the exact opposite of what Keynes prescribed. And it’s contributed heartily to an unsustainable debt overhang in the larger economy, which limits our policy options and contributes to currency risk.

Yeah, dollar crisis, massive bank runs, that would definitely precipitate the next big depression. America will be collectively sucking on dirt if that ever happens. Really not a good outcome, pareto failure.

So I don’t agree with Krugman, but I don’t know what the right approach is either, probably just a middle ground, enough stimulus to prop things up, don’t let it collapse, give things enough of a push to keep unwinding.[/quote]

I agree with this for the most part Gandalf, there has to be a middle ground, seems just like politics , economics seems to gather extremist from both sides. (I am getting really tired of extremism that seems so prevalent now days).

Things will not be better if there is a collapse.

[Nor-LA-SD-guy]

One more thing, Canada did not pursue austerity policies,

In fact they have been adding quite a bit of stimulus this year,

The only thing they did (or more importantly did not do) is not have a lot of subprime loans
And they did have a bank regulator who was not asleep at the wheel as well.

[Nor-LA-SD-guy]

One more thing, Canada did not pursue austerity policies,

In fact they have been adding quite a bit of stimulus this year,

The only thing they did (or more importantly did not do) is not have a lot of subprime loans
And they did have a bank regulator who was not asleep at the wheel as well.

[Nor-LA-SD-guy]

One more thing, Canada did not pursue austerity policies,

In fact they have been adding quite a bit of stimulus this year,

The only thing they did (or more importantly did not do) is not have a lot of subprime loans
And they did have a bank regulator who was not asleep at the wheel as well.

[Nor-LA-SD-guy]

One more thing, Canada did not pursue austerity policies,

In fact they have been adding quite a bit of stimulus this year,

The only thing they did (or more importantly did not do) is not have a lot of subprime loans
And they did have a bank regulator who was not asleep at the wheel as well.

[Nor-LA-SD-guy]

One more thing, Canada did not pursue austerity policies,

In fact they have been adding quite a bit of stimulus this year,

The only thing they did (or more importantly did not do) is not have a lot of subprime loans
And they did have a bank regulator who was not asleep at the wheel as well.

[Rich Toscano]

“In fact, during periods of uncertainty, the US Dollars becomes the safe haven for investors.”

And what happens when that ceases to be the case, and creditors price in the very low chance that we will pay our debt back in real terms? That’s when you will really see the “collapse” everyone keeps talking about.

That’s my issue with Krugman et al’s framework… the unquestioned assumption that the world will forever keep buying all the super-low rate debt we cram down their collective throat without ever, at any point, stopping to question how we will pay it all back.

[Rich Toscano]

“In fact, during periods of uncertainty, the US Dollars becomes the safe haven for investors.”

And what happens when that ceases to be the case, and creditors price in the very low chance that we will pay our debt back in real terms? That’s when you will really see the “collapse” everyone keeps talking about.

That’s my issue with Krugman et al’s framework… the unquestioned assumption that the world will forever keep buying all the super-low rate debt we cram down their collective throat without ever, at any point, stopping to question how we will pay it all back.

[Rich Toscano]

“In fact, during periods of uncertainty, the US Dollars becomes the safe haven for investors.”

And what happens when that ceases to be the case, and creditors price in the very low chance that we will pay our debt back in real terms? That’s when you will really see the “collapse” everyone keeps talking about.

That’s my issue with Krugman et al’s framework… the unquestioned assumption that the world will forever keep buying all the super-low rate debt we cram down their collective throat without ever, at any point, stopping to question how we will pay it all back.

[Rich Toscano]

“In fact, during periods of uncertainty, the US Dollars becomes the safe haven for investors.”

And what happens when that ceases to be the case, and creditors price in the very low chance that we will pay our debt back in real terms? That’s when you will really see the “collapse” everyone keeps talking about.

That’s my issue with Krugman et al’s framework… the unquestioned assumption that the world will forever keep buying all the super-low rate debt we cram down their collective throat without ever, at any point, stopping to question how we will pay it all back.

[Rich Toscano]

“In fact, during periods of uncertainty, the US Dollars becomes the safe haven for investors.”

And what happens when that ceases to be the case, and creditors price in the very low chance that we will pay our debt back in real terms? That’s when you will really see the “collapse” everyone keeps talking about.

That’s my issue with Krugman et al’s framework… the unquestioned assumption that the world will forever keep buying all the super-low rate debt we cram down their collective throat without ever, at any point, stopping to question how we will pay it all back.

[AK]

[quote=Rich Toscano]That’s my issue with Krugman et al’s framework… the unquestioned assumption that the world will forever keep buying all the super-low rate debt we cram down their collective throat without ever, at any point, stopping to question how we will pay it all back.[/quote]

I do hope the powers that be are rolling over short-term Treasuries into 10- and 30-year notes … or yeah, we’re Greeced.

[AK]

[quote=Rich Toscano]That’s my issue with Krugman et al’s framework… the unquestioned assumption that the world will forever keep buying all the super-low rate debt we cram down their collective throat without ever, at any point, stopping to question how we will pay it all back.[/quote]

I do hope the powers that be are rolling over short-term Treasuries into 10- and 30-year notes … or yeah, we’re Greeced.

[AK]

[quote=Rich Toscano]That’s my issue with Krugman et al’s framework… the unquestioned assumption that the world will forever keep buying all the super-low rate debt we cram down their collective throat without ever, at any point, stopping to question how we will pay it all back.[/quote]

I do hope the powers that be are rolling over short-term Treasuries into 10- and 30-year notes … or yeah, we’re Greeced.

[AK]

[quote=Rich Toscano]That’s my issue with Krugman et al’s framework… the unquestioned assumption that the world will forever keep buying all the super-low rate debt we cram down their collective throat without ever, at any point, stopping to question how we will pay it all back.[/quote]

I do hope the powers that be are rolling over short-term Treasuries into 10- and 30-year notes … or yeah, we’re Greeced.

[Author]

Posts