Paul Krugman: Who'll Stop the Pain?

[Stuart G]

http://www.nytimes.com/2009/02/20/opinion/20krugman.html?_r=1


"Earlier this week, the Federal Reserve released the minutes of the most recent meeting of its open market committee — the group that sets interest rates. Most press reports focused either on the Fed’s downgrade of the near-term outlook or on its adoption of a long-run 2 percent inflation target.

But my eye was caught by the following chilling passage (yes, things are so bad that the summarized musings of central bankers can keep you up at night): “All participants anticipated that unemployment would remain substantially above its longer-run sustainable rate at the end of 2011, even absent further economic shocks; a few indicated that more than five to six years would be needed for the economy to converge to a longer-run path characterized by sustainable rates of output growth and unemployment and by an appropriate rate of inflation.

So people at the Fed are troubled by the same question I’ve been obsessing on lately: What’s supposed to end this slump? No doubt this, too, shall pass — but how, and when?

To appreciate the problem, you need to know that this isn’t your father’s recession. It’s your grandfather’s, or maybe even (as I’ll explain) your great-great-grandfather’s. "

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Outstanding analysis of the enormous problem we face.

[Uben]

1. Dupe

Already on page 1

[Stuart G]

2. If necessary, remove. nt

[muriel_volestrangler]

4. Not a dupe

not on page 1; and since it's dated Feb 20th, it can't be on any other page either.

[INdemo]

3. Back in October the banks and Wall St. were crying ..Give us the bail out

money or our economy will collapse..After 350bln,the markets didn't change,then they cried we need more bail out money.(after President Obama became President) The money was approved but yet to be distributed,and the markets dont change.Then they cried something needs to be done about the mortgage crisis and President Obama laid out a plan and the markets did react but hit the lowest mark in years..So now it is becoming more obvious that the Major banks and Wall St, are indeed manipulating the market until they get back all the money they lost plus billions more to cushion their balance sheets...Then will they start making loans? What will they scream for next..We are being scammed folks..Its a scheme set up by the most powerful financial institutions and not one government official has caught on yet..No doubt we are in a recession and close to being a depression but the banks could do more to help restore consumer confidence and that is a major part of battling this economic mess...the banks have been given everything they've asked for so far and have not responded...Sure looks like a scam to me..

[chill_wind]

5. K & R. n/t