Paul Krugman wants to wipe any semblence of a smile off your face
Friday, February 20, 2009 at 07:46PM And if you weren't depressed enough over the moribund state of our economy, just read left-wing hack Nobel winning economist Paul Krugman's latest ditty ... it's more depressing than Mickey Rourke's face.
Here's a summary: we're f*cked. The money passage:
"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."
He goes on to posit that even with the stimulus package -- which he strongly favored -- the economy likely won't recover until it reaches an utter standstill and there's nowhere left to go but up. How long will that take? Who knows, but think 'years' instead of 'months'. And it could be multiple years.
Sadly, he's probably correct. The economy is going through a massive de-leveraging -- to the tune of several trillion dollars -- and it could be several years before we see growth again. I don't think the stimulus package will have much impact, save at the margins ... Mr frumpy may be right: brace for a bumpy road.
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