Krugman - Life Without Bubbles - NYTimes.comOptimistic?! Krugman?!
... Late next year the economy should begin to stabilize, and I’m fairly optimistic about 2010....
Oh yeah baby, let's get that bubble going ...
Buy, buy, buy!
Ok, so there's more in the column ...
... In fact, however, things can’t just go back to the way they were before the current crisis...Hmm. A boom in business investment? Does that mean my most favored recent meme might get traction?
The prosperity of a few years ago, such as it was — profits were terrific, wages not so much — depended on a huge bubble in housing, which replaced an earlier huge bubble in stocks. And since the housing bubble isn’t coming back, the spending that sustained the economy in the pre-crisis years isn’t coming back either...
So what will support the economy if cautious consumers and humbled homebuilders aren’t up to the job?
A few months ago a headline in the satirical newspaper The Onion, on point as always, offered one possible answer: “Recession-Plagued Nation Demands New Bubble to Invest In.” Something new could come along to fuel private demand, perhaps by generating a boom in business investment...
... it may take a lot longer than many people think before the U.S. economy is ready to live without bubbles. And until then, the economy is going to need a lot of government help...
Amidst all the chaos, this is an oddly attractive time to be starting a small business -- if one can get health insurance (hint, hint).
Just remember, we're not done with bubbles. We have a lot to work out* before the US, and even the world economy, is out of the ICU ...
*See also ...
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