Krugman:

[lsanderson]

OK, OK, we always need to bear in mind Paul Samuelson’s line about how the stock market had predicted nine of the last five recessions. Still, the markets do seem to be telling us a couple of things:

1. The world looks a lot more like the way it’s viewed by the Krugman/Thoma/DeLong axis (hey, I like it) than as viewed by, say, the WSJ editorial page.

2. Policy makers have been worrying about the wrong things, obsessing over deficits when the real problem was lack of growth. More