It is becuase the bubble was so nig, the burst has to be just as big. the government spending puts off the inevitable. We would have done better to let Lehman fail. Now we have debt forever and still a weak recovery at best that will faulter.

We are all Japanese now and they are a serioulsy unhappy bunch of people, after all the Nikkei is only 80% off its all time high!

He skips over the period of 1929-1932 when all assets fell precipitously, equities by 89%, real estate by 30%. GDP, Blue collar wages and general price levels all fell by about 30%.

The recovery in asset prices began nine months before Roosevelt took office, and GDP just as he took the oath. In other words, a large part of the recovery occurred before the New Deal had any real effect and was simply a result of things having bottomed.

Krugman's certainty in every opinion he expresses should give pause to those who hang on his every pronouncement. Yes, I know, he has a lovely graph to prove every point.

If 2009 were 1929, we entered 1930 with a New Deal on steroids, at a time when our fiscal position was an order of magnitude worse. We are resuscitating bubbles, like commodities, that never even existed in 1929.

Krugman's analogy to 1937 is nonsensical.

He skips over the period of 1929-1932 when all assets fell precipitously, equities by 89%, real estate by 30%. GDP, Blue collar wages and general price levels all fell by about 30%.

The recovery in asset prices began nine months before Roosevelt took office, and GDP just as he took the oath. In other words, a large part of the recovery occurred before the New Deal had any real effect and was simply a result of things having bottomed.

Krugman's certainty in every opinion he expresses should give pause to those who hang on his every pronouncement. Yes, I know, he has a lovely graph to prove every point.

If 2009 were 1929, we entered 1930 with a New Deal on steroids, at a time when our fiscal position was an order of magnitude worse. We are resuscitating bubbles, like commodities, that never even existed in 1929.

Krugman's analogy to 1937 is nonsensical.