All I can say about Krugman is that I now believe he is right about spending. He has said in the past that we could have been done with this whole thing in 18 months if we had spent enough. One thing I know is that during a recovery, you can not cut the spending, especially if green shoots are just appearing.
Agree, been saying the same thing for 3 years. Its the small-government group -- the folks that do not understand the financial system, central banking and international economics -- that think we should let the banks crash, balance the budget and starve the economy of fuel.
For the record, in the context of a financial shock and prolonged recession:
Bailing out systemically important banks = good, letting the traders and CEOs walk away with millions tax free = bad.
Low interest rates, monetary expansion and other forms of stimulus = good, balanced budget amendments, gold-standards and other foolish ideas for creating deflation = bad.
Frustrating world we live in. Still the best we have lol. Does the universe balance things out in the end?.....I don't know but I sure hope so. I'm sure Dawkins would disagree lol. I tend to follow the mystics.