Real Numbers on Real Debt

Lacy Hunt's observations published recently by Mauldin deserves a hard look. His argument is that the current economic problems have appeared many times before, all as the result of overextended borrowing and nonproductive debt. He has no real argument with the stimulus, arguing that illiquidity is the worst possible circumstance in the scenario, but states that every single similar economic episode has evolved in the same way: long term low growth with low interest rates and no runaway inflation.

As much as I hate to say it, a vote for Krugman.