I've always believed that a speculative bubble need not lead to a recession, as long as interest rates are cut quickly enough to stimulate alternative investments. But I had to face the fact that speculative bubbles usually are followed by recessions. My excuse has been that this was because the policy makers moved too slowly - that central banks were typically too slow to cut interest rates in the face of a burst bubble, giving the downturn time to build up a lot of momentum.
Paul KrugmanThe problem isn't that people don't understand how good things are. It's that they know, from personal experience, that things really aren't that good.
Paul KrugmanThe problem with digital books is that you can always find what you are looking for but you need to go to a bookstore to find what you weren't looking for.
Paul KrugmanPolitical figures who talk a lot about liberty and freedom invariably turn out to mean the freedom to not pay taxes and discriminate based on race; freedom to hold different ideas and express them, not so much.
Paul Krugman