Krugman: Fed Can't Save Us from Great Depression II

Krugman: "If we don't act swiftly and boldly," declared President-elect Barack Obama in his latest weekly address, “we could see a much deeper economic downturn that could lead to double-digit unemployment.” If you ask me, he was understating the case. ===== How was he understating the case? Do you expect TRIPLE DIGIT unemployment ?? That would be quite hard to achieve !! *grin*.

Handing slick-shoed bankers $700 billion does not solve any problems for the US long term and does little for the short term. Obama's plan of building infrastructure is a great one---at least we will have something to look at and use in the end. If we can bring back some manufacturing from foreign countries we will have employment and retail to sell. We need to make something besides hamburgers and burritos in this country.

I agree--only deleveraging will solve our economic problems. The TRAP only fed the excess lions. Now we must repay all that wasted tax money which adds to our problems. After all the, government has been in the Ponze scheme business for years Maybe they should all go to jail! I feel a depression is being hidden under the rug---just waiting.

Krugman is one guy with an opinion. C'mon, we're still only @ 6% unemployment! 1980 was much worse than this. Quit scaring people and puffing up your chests.

OK now that we've heard from Krugman's far left, let's hear from Mankiw or some other pragmatist without an agenda (spend, spend, spend).

Building infrastructure is a good use for stimulus money, but can only absorb a small portion of the stimulus money being discussed. We have a limited number of qualified trades, contractors, heavy equipment etc. Obama will face the same problem FDR did, you just can not put that much money in infrastructure in a short period of time.

What a bunch of Socialist Propoganda. We can spend out of this, that is what got us into this problem as consumers and as a nation. Now is the time to cutback and now is the time for the government to some of their departments, department of energy what have they done?, department of education what have they done?, and many others and also to cut taxes on business, capital gains and people even the rich. There will be no easy fix but stopping government spending and controlling the monopolistic government from taking over area of business would certainly help. Let people and business work this out stay out of it government we don't need you. Disgusted!

FDR prolonged the depression by continuing and enhancing Hoover's interventionist policies. Why else did it last 17 years? WW2 did not end it. Millions of young workers were drafted into minimum wage military jobs. Just having a job does not equal prosperity. Government spending robs the efficient private economy. The booms are caused by government created easy credit which distorts the market. You all need to read some Rothbard and Hazlitt.

outsourcing has taken a toll on the US economy. We need to keep jobs in america. Reduce taxes on busineses.

If we keep talking about a depression we will have a depression. I think that is what these economists want so they can go on TV and get publicity. Start talking about a positive recovery and then we'll listen. I believe Obama can get the stimulus passed despite republican objections and our economy will come back. STOP BEING SO NEGATIVE!

Time to wake up America. We already gave away our childrens future. In the coming depression the only things of value will be guns, food and ammo. The only solution to the problem will be a revolution, and a return to our constitutional values.

Krugman is a loud mouth liberal who never sees the damage democrats and liberals did to this economy

The Fed has thrown everything except the kitchen sink at the problem. GD2 is unavoidable. More spending? Sorry Paul, Unless you want to rebuild the interstate highway...with people using picks and shovels...there is NO jobs program to prevent the next GD.

When will people understand that the gov't doesn't create wealth of any kind. They either destroy it or redistribute it. Infrastructure seems nice on the surface, but how will Obama pay for it? He will either print money or tax us to get more money, which hurt us now with less take home pay or later with hyper-inflation. Did people already forget the price inflation in the 70's? What we need is smaller gov't and less red tape in every facet of doing business. Let WE THE PEOPLE get things going again and get out of our way Washington.

THE WAY THINGS LOOK ,ONCE OBAMA TAKES OFFICE HE SHOULD PLAY SAFE AND PUT THE WHITE HOUSE IN HIS WIFES NAME SO THEY WILL BE ASSURED OF A PLACE TO LIVE.

Unemployment in California is 8.2% and that does not count the people who have been unemployed for more than a year. Some states are not suffering as much as others. Florida and parts of California are in real pain. Jobs, please, not a hand out to the banks.

To prevent another depression, we must first look at the cause and that is cooperate GREED!!!! Those sick CEO's and executives complained that it cost too much to produce here so they sent work outside the US but not their own!!! They saved lots of money at the expense of hard working Americans and then they gladly pocketed all the savings. Hello, what does the government not get? Unless we stop the GREED of cooperations, the working class will never have enough to stimulate the economy and the GREEDY will never be happy with several homes, cars etc. Hello America, wake up and smell the coffee!! Cooperate America has hit everyone and is smiling in the end as they continue to cut everyone else out of the pie except themselves!!!!!! Too many CEO and executives and not enough money to go around to make though greedy ones happy!!!

Good work boys. Keep up the negative drivel. I'm still waiting for you and that crook Blodget to turn positive before I sell my portfolio. I know you won't publish this but it amuses me to watch these clowns.

"Republican posturing suggests Obama will be forced to cut back and/or delay his spending plans..." How exactly will "Republican posturing" force a Democratic President, Senate, and House to do anything? C'mon, Krugman, by January 20 you'll have come with something besides the blame-the-Republicans-for-everything approach, even if it did win you a Nobel Prize.

Hunter gatherers moved to farming ,then industrialization,then to service based economy.In todays capitalist world revolving on fiat currency everyone wants to be the financial services leader.... productivity gains by technology and automation help the second tier countires develop.....but what happens once it has gone awry?...Is there a simply new leader or another evolution?