According to Paul Krugman
(the Nobel Prize in Economics 2008 winner) we should not underestimate our ongoing crisis. Using his words "there were only two eras in economic history that were widely described
as “depressions” at the time: the years of deflation and instability
that followed the Panic of 1873 and the years of mass unemployment that
followed the financial crisis of 1929-31."
In his column
for the New York Times he writes that we are on the edge of a third depression - "this third depression will be primarily a failure of policy." Krugman blames politicians for "raising taxes and cutting spending (which) will actually expand the economy, by improving business confidence". He concludes that instead of spending in the
midst of a crisis, long-term fiscal responsibility is what should really matter.
I wouldn't see the situation so bleak but of course I'm not an economist to judge the situation properly. Any comments?