Krugman: “got that 30’s feeling”

A post from Krugman’s blog today.

Given a crisis that should have been relatively easy to solve — and, more than that, a crisis that anyone who knew macroeconomics 101 should have been well-prepared to deal with — what we actually got was an obsession with problems we didn’t have.

He points to ‘intellectual failure’ among the ruling classes, and not just here in the U.S.

Fears of far-right rise in crisis-hit Greece

ATHENS, Greece — They descended by the hundreds — black-shirted, bat-wielding youths chasing down dark-skinned immigrants through the streets of Athens and beating them senseless in an unprecedented show of force by Greece’s far-right extremists.

In Greece, alarm is rising that the twin crises of financial meltdown and soaring illegal immigration are creating the conditions for a right-wing rise — and the Norway massacre on Monday drove authorities to beef up security.

The move comes amid spiraling social unrest that has unleashed waves of rioting and vigilante thuggery on the streets of Athens. The U.N.’s refugee agency warns that some Athens neighborhoods have become zones where “fascist groups have established an odd lawless regime.”


27 responses to “Krugman: “got that 30’s feeling”

  1. It wouldn’t be surprised what is happening in Greece, will happen here to. Its just a matter of time, that all hell will break loose.


  2. Don ,

    On the right we have been warning , for at least a year, that Greece style disruptions are coming here . You seem to be coming over to our point of view .


  3. Don, tell us how you really feel! LOL

    Our economic problems come from politicians capitulating to corporate demands and a lack of regulatory oversight during the Bush era. The housing bubble came from the so-called “free market” non-regulatory period when no one was minding the store. Result: Economic catastrophe. Now the Repugs are acting like they had nothing to do with it but want to “fix” the problem. We already know how they “fix” problems.


    • Hey kay, nice to see you! Don’t you love how the Repugs defend the tax cuts for the rich becasuse they’re the ‘job creators’? After Bush’s tax cuts, these very guys managed to lose 18million jobs. 18-fracking-million-jobs!!! Oh, and they broke the world economy. That too.


  4. Don ,

    I don’t recall personally insulting you . But let’s look at your argument . Housing was a big part of the economic downturn . Back in the stone age when I got my mortgages, the banks gave me a hard time before they would lend me money. They had to live with me and my loans for years. Thanks to fannie and freddie, your side’s bastard children, banks could sell their mortgages and off load the risk to first the government and then stupid investors . So lending standards collapsed. That and all of the liberal blackmailing of the banks to lend to high risk folks caused the current trouble .

    The other part of the collapse was high energy costs , which once again , you guys are responsible for with your green is good, oil is bad policies .

    Now instead of the personal attacks, try arguing with my ideas .

    If your ideas are so good, why did 4 years of a Democratic Congress overlapping with 3 years of a Democratic Presidency produce such horrible economic performance ? Your guys had both houses of Congress for 4 years . Their record is as bad as Obama’s, if you look at the numbers when they took power and when they gave it up . Although Reid is still leader .


  5. You had a hard time with your banks, then that’s your problem. So don’t start playing the victim card. Also the housing collapse was under Bush’s watch, or did you forget that by suffering from amnesia. I don’t hear you complaining about the two wars that Bush and Cheney got us into.

    You also sound a lot like your idol Glenn Beck, and I’ll throw in the other fat-ass shit bag Limbaugh. Keep voting Republican, and see where it will get you.


  6. Don ,

    ” fat-ass shit bag Limbaugh. ”

    This is why I enjoy my discussions with Liberals. Your mastery of the English language and your courtesy. I do not play the victim card. I was using myself as an example. The fact that I did not default and many did under the Liberal policies of getting poor people into McMansions, shows that the policies your people put into place in the late 90s and carried on under Barney Frank during Bush , were the problem .

    ” Also the housing collapse was under Bush’s watch, or did you forget that by suffering from amnesia. ”

    Okay, everything that goes wrong during a President’s watch is his fault. Is that the standard ? ? Is it ? ? Then why, are you blaming President Bush for 3 years of 9.3% average unemployment under President Obama ? I am applying your standard. Or why do you have one standard for Bush, and another for President Obama ?

    ” I don’t hear you complaining about the two wars that Bush and Cheney got us into. ”

    You are opening up another topic . Wait, wait, those wars are to blame for everything. Okay, again your standards . President Obama said Afghanistan was the good war that he wanted to fight . So why is it not, his war now ? And then there is Libya .


  7. Don,
    Have a nice day. 🙂


  8. Try this Moe. Talk about reich-wing fanaticism

    @Alan Scott: The colapse started with the Wall Street backed Gramm-Leach-Bliley Act that overturned the 1933 Glass-Steagall Act allowing Wall Street Bankers to return to the good ‘ol money making days of the roaring 20’s. Gramm would have been or Secretary of the Treasury had John “the fundamentals of the economy are sound” McCain become President.

    You also need a bit of an education on Fannie and freddie. Maybe later.

    Go ahead and keep making yourself sound Ridiculous by blaming your middle class neighbors and “stupid investors.”


  9. Cry and Howl,

    I will stop by.

    Jay Ell ,

    ” You also need a bit of an education on Fannie and freddie. Maybe later. ”

    I have debated the GSEs more times than I can remember. You Liberals have a ginormous blind spot when it comes to them . But if you can enlighten me with new facts I have never heard before, I humbly await the promised education .

    ” Go ahead and keep making yourself sound Ridiculous by blaming your middle class neighbors and “stupid investors.” ”

    You hurt my sensitive feelings. I had no idea I sounded Ridiculous. I didn’t think, writing, I sounded like anything. I did not blame my middle class neighbors. And if you would ask the investors who lost money buying mortgage backed securities I am sure they would admit it was the most stupid thing they ever did .


  10. @Alan Scott: “I did not blame my middle class neighbors” though you did say, “I did not default and many did under the Liberal policies of getting poor people into McMansions.” My young neighbor and his wife who lost half their income as his wife’s job was phased out, did not live in a “McMansion.” They were not stupid investors. They were not even that politically involved. Their only crime was buying at the wrong time. At the height of a Wall Street manufactured housing bubble. They just wanted to buy their first home. The Wall street speculators who created Credit Default Swaps and Collateral Debt Obligations made billions off this worthless paper by fucking the millions like my neighbor and the small investor you seem to have such a lack of empathy for. (Again, see Gramm-Leach-Bliley)

    And yes, one can sound ridiculous, intollerant, callous, uncaring, pompous, self-important, patronizing and flat out mean, through one’s writing.


  11. Jay Ell ,

    I see you have added more descriptions to me . Intolerant, ridiculous, pompous, self important, and patronizing, I may very well be . I am not callous, uncaring, or mean . I care deeply about the people , like your neighbor, who have gotten royally screwed. I just blame different people than you do .


    • @Alan Scott
      The problem is that the people you blame (not just you but most people) takes on a narrow and usually ideological slant. Fannie, stupid investors, the poor, the “green is good, oil is bad policies” (even though high energy costs are directly related to manipulation of supply by the producers, [read Saudis] but mostly Wall Street speculators), Barney Frank, and so on. Because of this ideological narrowness, you can never fully understand the depth of this economic crisis. Blaming Barack Obama for the disaster that is this economy, for example, is just as simplistic as placing all the blame on G. W. Bush. Just as the Great Depression was not caused by, and did not start with the stock market crash of 1929, the crash was 30 years in the making, so too is our disaster. It is usually difficult to compare history’s, but in this case the similarities are striking. Then, just as now, there was run-away unregulated corporatism, out-of-control speculation, housing bubbles, monopolization of industry, union busting, massive unemployment, huge tax cuts for the wealth class, bought-and-paid-for corporate politicians, and with the exception of Woodrow Wilson republicans in control of the White House and both chambers of Congress for the first three decades of the twentieth century! Then there was no social programs that helped the middle class (the New Deal came after). Today we are simply gutting these programs by “shrinking the government down to the size where it can be drown in a bathtub” and returning to an environment of monopolization and deregulation. In short this disaster has been caused by 30 years of insane right wing, Milton Friedman, Supply-Side, trickle-down Reaganomics, signed off on by Reagan, H. W. Bush, Bill “NAFTA, GATT, WTO” Clinton, and G. W. Bush. And now, sadly, Obama and a largely corporate democratic party. It has historically been the liberal and socialist voice that kept the Democratic Party from moving too far to the right. We are in this economic mess because that counter-weight has largely been purged from the political discussion over the last thirty years allowing for the rightward shift toward corporatocracy.
      Sorry Moe for taking up so much space with my rant. I usually ignore the right wing comments (when not at my blog) but I couldn’t help myself here. Alan, you may have the last word here if you wish. Or, stop by my blog and rant away…


      • Do your self a favor, and don’t even bother to try to reason with Alan. He’s just a troll who goes to all the liberal and progressive blogs, and writes nonsense.


        • Hello Don,

          I don’t mind debating the right wingers. I find their arguments are easily debunked with often nothing more than simple facts. I believe a liberal, and in some aspects, a socialist form of government is the way the largest, strongest middle class in history was built, and I believe history bears that out. Other than a slight condescending tone with a hint of sarcasm I have found nothing offensive or threatening in Alan’s comments as I have in some of the right wing comments on other blogs, including mine occasionally. So if he, and others, wish to give me the opportunity to shed light on the fallacy of right wing conservatism, so be it.


      • Jay El:
        As it happens, I just started re-reading Kevin Phillips 1989 book “The Politics of Rich and Poor” which focused on how the Reagan years affected and will (this was 20+ years ago) effect the country in the 90’s and forward. And yes, as we all know, the tremendous growth in income inequality and the attendant damage to the social fabric started then. Phillips says of the debt from Reagans terms: “For the first time in 70 years, America had even become a net internaitonal debtor.” Pretty much nails it.


        • I haven’t read that one. It’s on the list now though. Reagan racked up more debt than all 39 Presidents before him combined, doubled FICA taxes on everyone making under $90 thousand and used that to pay for tax cuts for the wealth class. And let’s not forget Dick Cheney. “Reagan taught us deficits don’t matter.” He also took us from the largest exporter of finished goods to the largest importer of Chinese crap. But let’s not confuse our right wing friends with facts. It’s easier to believe union teachers and those damn brown people are to blame. Leave me alone now, I’m missing Survivor Island! LOL


  12. Don,

    Hi. Nonsense is any idea you disagree with . I’ve given you opportunities to defeat my ideas and you always degenerate down to insults and profanity . Jay Ell and I are as far apart as you can get, but we are each laying out our beliefs and letting ideas battle each other.


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