After the House failed to pass the bailout package, on Monday afternoon Paul Krugman posted a blog entry titled OK, we are a banana republic in which he quotes himself from an earlier post:
So what we now have is non-functional government in the face of a major crisis, because Congress includes a quorum of crazies and nobody trusts the White House an inch.And just because it's interesting, roll back the clock three years to his column of 8 August 2005, That Hissing SoundAs a friend said last night, we’ve become a banana republic with nukes.
And speaking of "Dow 36,000" (and returning back to the future):Of course, some people still deny that there's a housing bubble. Let me explain how we know that they're wrong.
One piece of evidence is the sense of frenzy about real estate, which irresistibly brings to mind the stock frenzy of 1999. Even some of the players are the same. The authors of the 1999 best seller "Dow 36,000" are now among the most vocal proponents of the view that there is no housing bubble.
And last year, when the McCain campaign announced that the candidate had assembled “an impressive collection of economists, professors, and prominent conservative policy leaders” to advise him on economic policy, who was prominently featured? Kevin Hassett, the co-author of “Dow 36,000.” Enough said.