Paul Krugman: Getting out of the Financial Crisis

"Regulation is not going to get us out of the current crisis, " says economist Paul Krugman. "It's what you do to prevent a recurrence. Basically, we are going to have to figure out which parts of this greatly expanded financial system are, in fact, going to be things that we have to rescue in a crisis."
This is an excerpt from a Carnegie Council talk on April 4, 2008. For the full video, audio, and transcript, go to http://www.carnegiecouncil.org

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[AFRIKTODAY]

Just another economic fascist. Take control of what? By whom? Are you crazy dude!! I build my company and should be accountable for its failures and profits. As an entrepreneur, I am a risk taker, and if my business plan does not pan out the way I expected, I should sink ALONE instead of taxing everybody else for A RESCUE; while a body of BUREAUCRAT ARE TAKING CONTROL OF MY COMPANY! This seems to stem right out of the COMMUNIST MANIFESTO! You KRAZY KRUGDUDE? Is this America or sovietISM?

[soundmoneyfan]

TARP money was tax dollars, if you pay taxes, you got looted. since our gov't is broke, it was really just added to the deficit, which is funded thru the sale of bonds that are backed by the treasury dept which is funded by tax payers. i'm not saying that paulson took money from your checking account, but the treasury was looted by the bankers after they ran their firms in the ground. the debt, down the road, will be paid by inflation which will make you feel the affects of the looting later

[orange11emilie]

Either this guy is a puppet or he does not know what he's talking about.

[tlw1951]

@finarrykahn13

Interest rates as Zero and high unemployment = reduced demand = even more unemployment.

Break the downwards spiral by creating demand with investments in the future like education and infrastructure.

Keynes breaks down when a knot head politician spends a budget surplus on war and tax breaks instead of retiring debt.

[scientrophic]

@AFRIKTODAY Have you read the Communist Manifesto? No one cares whether your small business succeeds or fails. It isn't like your business is the lynchpin for American liquidity, which when removed, results in a financial meltdown of the world economy. The world isn't as simple as communism vs. capitalism. Those are ideologies dreamed up by people. They're clever, but dated. Do you use the Bible to design an airplane? Why would you apply Marx or Adam Smith when to these modern problems?

[ronpaulfan1]

AUSTRIAN Econoimcs.... NOT keynesian... keynesian theory has ruined our country.... go read a book on Austrian Econoimcs!!

[finarrykahn13]

I want to hear an actual Keynesian help me here. How does spending and artificial infusion of credit / monetary supply not result in destructive inflation? Aren't the Consumer Price Indexes going up? Aren't oil and gold and other commodities at all time highs? Can someone explain what increased spending will do but increase consumption and demand, not savings and production? I am an economics neophyte drawn more to Austrian economics, but want to hear the other side of the story fairly.

[Pglarsen]

Yeah. Why don't Americans nationalize all their currency markets? Then they will copy the guys they were fighting in The Cold War.

[Steve458791]

Lets just bail everyone out. Forget we are spending trillions we don't have.

[Turnedleaf]

Are you an idiot ? Try read soundmoneyfan again....

[kingsleykillz]

I believe you are referring to diction. You prefer: how high, over how much.