And despite the staggering deficit figures, some are spreading fear that the economy will come crashing down if immediate, drastic ? and expensive ? action is not taken. One example is New York Times columnist and Nobel Prize-winning economist Paul Krugman, who in his Jan. 5 column detailed his ?nightmare scenario?:
?It takes Congress months to pass a stimulus plan, and the legislation that actually emerges is too cautious,? Krugman wrote. ?As a result, the economy plunges for most of 2009, and when the plan finally starts to kick in, it?s only enough to slow the descent, not stop it. Meanwhile, deflation is setting in, while businesses and consumers start to base their spending plans on the expectation of a permanently depressed economy ? well, you can see where this is going.?
?So this is our moment of truth,? Krugman continued. ?Will we in fact do what?s necessary to prevent Great Depression II??
Nobel prize winning economist doesn't even understand what failed miserably during the first great depression. We are in for a world of hurt my friends.