Suppose you had spent the last five years actually believing what you read from the usual suspects — the WSJ opinion pages, National Review, right-wing economists, etc.. Here’s what would have happened:
In 2006 you would have believed that there was no housing bubble.
In 2007 you would have believed that the troubles of subprime couldn’t possibly spread to the financial system as a whole.
In 2008 you would have believed that we weren’t in a recession — and that the failure of Lehman was unlikely to have bad consequences for the real economy.
In 2009 you would have believed that high inflation was just around the corner.
At the beginning of 2010 you would have believed that sky-high interest rates were just around the corner.
Paul Krugman “Who You Gonna Believe?” - NYTimes.com 9/21/10
My money’s on Kruggie, because he doesn’t cost me any.