What Krugman said is that during the Great Depression, there was NOT enough spending. It was actually the REVERSAL of Keynesian ideas that made the country worse. In every year the government increased spending, unemployment went down. But then the fiscal conservatives convinced FDR that he had to try to balance the budget, so he increased taxes and LOWERED spending, and the economy went south. And so it wasn’t until WWII, the largest public works project in history, the government was able to get out of the depression.

But the mortgage industry contends the measure will impose steep and unpredictable costs on its companies, which will be forced to pass them along to borrowers in the form of higher fees and interest rates.

Make no mistake about it, we are being taken, both coming and going!

I believe it was just last week that Krugman said in so many words that government spending during the Great Depression didn’t do the trick

Yes, and Krugman thinks the answer is more spending! He frightens me.

I think your common sense is spot on.

Oh, the irony, the irony…And not just them, but all of those Hollywood stars who backed Obama no matter what he REALLY did (as opposed to what he said), like Sean Penn bein gso thankful that this country finally elected a liar, cheat, and thief like Obama – that wasn’t how he put it exactly – that’s my translation!!

Or, like Rosie O’Donnell who said in a recent interview that Obama has done NOTHING for her to criticize, and that she is thrilled that he has the opportunity to restore our standing in the world.

Really? NOTHING?? Not his anti-gay marriage stance? Not that he picked an actively anti-gay, anti-choice man to run the DNC? Not that he supported FISA? Not that he has expanded the Faith-based Initiatives AND allowed them to hire people based on religion? Not that he is keeping extraordinary rendition and states secrets?? Not that he just proposed a MASSIVE budget bill on top of the other gazillion dollars for the stimulus package? I could go on and on, yet she find fault with NONE of these things??? Pathetic. Just pathetic how progressives and liberals have become JUST LIKE the Bush supporters they despised…

I have to say, when we aren’t inundated by trouble making Obots out to hijack the threads by nitpicking or downright verbal assaults, there are usually GREAT comments. I find the readers here to be well-informed, passionate, and often, VERY funny…

And of course I read your comments! I never really know when my posts are going to go up, so sometimes I’m a little late to the party (like this one), but yes – I care what y’all think!

Thanks for more info on your friend. You have got to be KIDDING me abt Barney! I used to live in Boston (years ago), earlier on in his tenure. I was so proud of MA for having elected him. Now, he is just like all the rest of them, though not even allowing someone who is a Rep. to work with him is absurd (and how did he find out, I have to wonder?). Such incredible tolerance from someone who has been the recipient of tolerance. WOW.

Martin Feldstein says military spending is effective stimulus yet the past few years seem to disprove it, maybe because military spending these days doesn’t involve the huge industrial effort like before — even as recently as the Reagan era.

Too many economists are blinded by partisanship that extends to regarding even known historical economic data with jaded perspectives. It’s not a perfect science — I’m married to an economist- by-training.

Common sense tells me that government borrowing required to finance the profligate spending proposed will crowd out the private sector. And taxation of more than just the top 2% will be required to pay the debt, delivering a punishing blow that could likely extend the recession unless our POTUS and legislators show some restraint eventually.

Time will tell.

Martin Feldstein says military spending is an appropriate/effective stimulus yet the more recent past seems to disprove it — military spending these days doesn’t involve the huge industrial effort as it did before — even as recently as the Reagan era.

I think too many economists are blinded by partisanship and their opinions are therefore suspect. They even regard history with jaundiced eyes.

Common sense tells me that the profligate spending recently proposed will crowd out the private sector vis a vis access to credit, and the certain increased taxation of not only the top 2% but many more of us will deliver a mortal blow unless our POTUS and legislators restrain themselves.

Time will tell, that’s for sure.

the deleveraging process has barely begun,

Call it the global foreclosure

Something LD has talked about. Interesting interview.

http://www.docstoc.com/docs/1679005/Obama-Sued-Citibank-Under-CRA-to-Force-it-to-Make-Bad-Loans

If the stimulus is spent on the homeless, (my city is getting $95 million in stimulus money to spend on the homeless, grrreeeat) then when the money runs out cities are left broke again. (Unless cities can find a mayor to say no to the homeless advocates.)