L-Kabong and Ricter are mindless drones, here is the transcript of another interview with Lou Dobbs and Krugman in 2001, where krugman says the keyensian thing to do was cause a housing bubble.
DOBBS: To restimulate business investment, capital investment and corporate buying?
KRUGMAN: I think frankly it's got to be -- business investment is not going to be the driving force in this recovery. It has to come from things like housing, things that have not been (UNINTELLIGIBLE).
DOBBS: We see, Paul, housing at near record levels, we see automobile purchases near record levels. The consumer is still very much in this economy. Can he or she -- or I should say he and she, can they bring back this economy?
KRUGMAN: Well, as far as the arithmetic goes, yes, it is possible. Will the Fed cut interest rates enough? Will long-term rates fall enough to get the consumer, get the housing sector there in time? We don't know.
DOBBS: Your column today, you talked about Keynesian economics and how we've become adopters, if in denial, of it, adopters of Keynesian thinking, and our economic policy. How could you be so cynical?
KRUGMAN: No, I mean, look, it -- is anybody saying for the U.S. economy, Greenspan is wrong to try prevent the recession? We should have the recession, we should purge. The budget isn't as good as we thought. We should raise taxes, which are all of the things of course that we tell countries like Argentina. But for ourselves, no, we believe in cushioning ourselves from these things.
DOBBS: To restimulate business investment, capital investment and corporate buying?
KRUGMAN: I think frankly it's got to be -- business investment is not going to be the driving force in this recovery. It has to come from things like housing, things that have not been (UNINTELLIGIBLE).
DOBBS: We see, Paul, housing at near record levels, we see automobile purchases near record levels. The consumer is still very much in this economy. Can he or she -- or I should say he and she, can they bring back this economy?
KRUGMAN: Well, as far as the arithmetic goes, yes, it is possible. Will the Fed cut interest rates enough? Will long-term rates fall enough to get the consumer, get the housing sector there in time? We don't know.
DOBBS: Your column today, you talked about Keynesian economics and how we've become adopters, if in denial, of it, adopters of Keynesian thinking, and our economic policy. How could you be so cynical?
KRUGMAN: No, I mean, look, it -- is anybody saying for the U.S. economy, Greenspan is wrong to try prevent the recession? We should have the recession, we should purge. The budget isn't as good as we thought. We should raise taxes, which are all of the things of course that we tell countries like Argentina. But for ourselves, no, we believe in cushioning ourselves from these things.
