Krugman (again): Austerians = Bubble Deniers?

[BurtWorm]

Guess who's back in charge of setting conventional (read:bone-headed) wisdom in DC:

:eyes:


http://krugman.blogs.nytimes.com/2010/09/01/austerians-bubble-deniers/

September 1, 2010, 8:36 am
Austerians = Bubble Deniers?

In re this post: Economics of Contempt directs me to his list, a couple of years back, of prominent bubble deniers. There turns out to be a quite strong correlation between denying the existence of a housing bubble a few years back — and jeering at those who said there was — and insisting, now, that fiscal stimulus doesn’t, can’t work.

The question is, why do such people command such attention? As I’ve pointed out before, the same people who denied the existence of a housing bubble also told investors that budget deficits would send interest rates soaring; in other words, anyone who believed these people in the past, and acted on that belief, has lost a lot of money.