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Monday, May 11, 2009

Krugman Warns of Lost Decade

by Calculated Risk on 5/11/2009 08:58:00 AM

A few quotes from Paul Krugman in China ...

From Reuters: Krugman fears lost decade for US due to half-steps

"We're doing half-measures that help the economy limp along without fully recovering, and we're having measures that help the banks survive without really thriving," Krugman said.

"We're doing what the Japanese did in the nineties," he told a small group of reporters during a visit to Beijing.
"I'm mostly worried that the U.S. and the euro zone will have Japanese-type lost decades," he said.
"It's clear the administration won't take radical action to strengthen the banks any time soon," he said.