Quote (Thor123422 @ 28 Feb 2019 17:57)
Thats quite hyperbolic. Id have to see the whole discussion to see if he was being serious there.
written on the day after the election
https://www.nytimes.com/interactive/projects/cp/opinion/election-night-2016/paul-krugman-the-economic-falloutQuote
It really does now look like President Donald J. Trump, and markets are plunging. When might we expect them to recover? [...]
If the question is when markets will recover, a first-pass answer is never.
Under any circumstances, putting an irresponsible, ignorant man who takes his advice from all the wrong people in charge of the nation with the world’s most important economy would be very bad news. What makes it especially bad right now, however, is the fundamentally fragile state much of the world is still in, eight years after the great financial crisis.
Quote
[...] But what if something bad happens and the economy needs a boost? The Fed and its counterparts abroad basically have very little room for further rate cuts, and therefore very little ability to respond to adverse events.
Now comes the mother of all adverse effects — and what it brings with it is a regime that will be ignorant of economic policy and hostile to any effort to make it work. Effective fiscal support for the Fed? Not a chance. In fact, you can bet that the Fed will lose its independence, and be bullied by cranks.
So we are very probably looking at a global recession, with no end in sight. I suppose we could get lucky somehow. But on economics, as on everything else, a terrible thing has just happened.
After election day, the markets plunged due to the unexpected outcome and the uncertainty surrounding a "President Trump" - Krugman misread this uncertainty as the start of a global recession, because he was projecting his own personal disdain for Trump onto the "rational" markets.
He thought that Trump's presidency would be purely bad for the economy, and didnt even consider that a Republican president might pursue a classical business-friendly agenda with tax cuts and deregulation. In this opinion piece, Krugman proved himself to be so fundamentally biased against Trump, the GOP and conservative economic policies that his voice cant be taken seriously anymore. It's a prime example of TDS overwriting rational thinking in an otherwise intelligent individual.
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tldr: Krugman was dead serious there.
This post was edited by Black XistenZ on Feb 28 2019 11:15am