By coincidence, Mish (globaleconomicanalysis.blogspot.com) has a post today debunking Dr. Krugman's attempt at arguing that busts don't have to follow booms. For a blogger like Mish to destroy in argumentation a Nobel Prize-winner is like David slaughtering Goliath. But so it goes. So often the MSM just can't get it right.
This unfair fight that should have been unfair in the other direction is perhaps an example of what's wrong here in America. The brilliance and common sense are out of power. The Nobel for Peace (!) goes to a politician after a decade in which the globe has cooled; the Nobel for Economics goes to a left-wing op-ed writer who is still pining for FDR's solutions to a situation that is tres different from the Grrrreat D. People like Dr. Krugman really can't wait for the Big One to reappear so that they can impose Big Solutions. So they have to ignore the obviousness that this is just another economic cycle that will do what others do- run their course.
As physicians say, "Treat a cold, and it will last seven days. Leave it alone, and it will last a week." So with the economy. But in Obama-Krugman-land, building lots of roads with borrowed or printed money is the "doing something" that does more damage than an unnecessary course of antibiotics for a viral URI. But it sure is good for Big Gov and its hangers-on.
After a frenzied five or six years, the global economy simply needs a rest. The last thing it needs is an artificial "stimulus".