from Calpundit:
http://www.calpundit.com/archives/002158.html
an interview in which Paul Krugman states his belief that the Argentinian experience of economic collapse will, sooner or later, be repeated in the US.
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As the year's rolled un-merrily along, I've noticed a darkening of Krugman's tone.
He started the year with a fairly conventional brand of skepticism about the Bush administration's various economic and foreign policy plans and has moved quite firmly into a very strong oppositional position.
Regarding his prognosis for the US economy...
No one wants to hear this. No one. For reasons that need no elaboration.
Few want to say this either.
Believers don't want to say such things because, well, they believe the Administration's policies are sound (at least for them). Skeptics of all flavors - from old school conservative economists to their more radical colleagues - don't want to say this because there's a danger of alarmism. Also, even skeptics tend to believe that the US' very large and complex economy provides multiple firebreaks, by design and accident, which will prevent a true catastrophe from achieving runaway.
Perhaps the one thing both believers and skeptics can agree on is the 'resilience of capital' which is a demonstrated phenomena (not even the Great Depression killed it).
Even so, both a review of the numbers and a gathering of anecdotal information causes a nagging feeling that something big - and unpleasant - lies in wait for the US system. There are many stresses and few visible sources of relief. Now I must use a weary cliche: time will tell.
I'm interested in learning what the economists amongst us think.
DRM
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