Paul Krugman: Another bank bailout

Paul Krugman: Another bank bailout

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 h, and that Latvian success consists of one year of pretty good growth following a Depression-level economic decline over the previous three years. True, 5.5 percent growth is a lot better than nothing. But it's worth noting that America's economy grew almost twice that fast — 10.9 percent! — in 1934, as it rebounded from the worst of the Great Depression. Yet the Depression was far from over.
Put all of this together and you get a picture of a European policy elite always ready to spring into action to defend the banks, but otherwise completely unwilling to admit that its policies are failing the people the economy is supposed to serve.
Still, are we much better? America's near-term outlook isn't quite as dire as Europe's, but the Federal Reserve's own forecasts predict low inflation and very high unemployment for years to come — precisely the conditions under which the Fed should be leaping into action to boost the economy. But the Fed won't move.

Read more: http://www.stltoday.com/news/opinion/columns/paul-krugman/paul-krugman-another-bank-bailout/article_5ec6aee1-c5ed-542e-9fdb-ee360a14fdc1.html#ixzz1xa3efB59