Krugman On Rachel Maddow Show: Talks Economy, Financial Crisis (VIDEO)

Rachel Maddow, reporting on the beginning of what looks to be a dismal earnings season, thought she had perhaps detected a silver lining from the New York Times/CBS News poll that came out Monday night showing a sharp swing upward in the confidence Americans had in the economy. However, one of her guests tonight was Paul Krugman, and he poured cold water all over the notion that since the public's perception of the economy had brightened, such is the case in reality.

Testing for another silver lining, Maddow asked about a recent report showing some signs of life in the credit market (a signal Krugman had previously told Maddow was a far better barometer of the financial crisis and the economy than the swings in the Dow). Krugman replied that that was certainly "better news," but then said "or maybe the right way to say it is that things are getting worse more slowly, which is a good thing."

Watch the interview below.

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Comments

[beaupritchard]

Rachel ask ... "Are all our soldiers that good looking" ... welcome over to our side Rachel ... guys are going to be lining up at your door. (Better put the dog out)

[polcomm]

Dr Krugman as been the MOST consistent and most knowledgeable critic not only of Greenspan, Paulson and the other economic "experts" of the Bush Administration, but he has been RIGHT. He stated months ago, and those of us who follow Dr. Krugman know this, that at the end of 2010, employment would be 11% to 12%. He not only understands the world of high finance, but he can explain to the average person who does not have a Ph.D. in economics, or who did not go to Harvard. His extreme intelligence is undeniable, his ability to take complex issues and explain them simply but clearly, and his self deprecating manner is refreshing after the likes of Greenspan, Paulson and those who were blinded by the light of money and greed. He has been less critical of Bernanke, who he admits was his fellow Professor at Princeton before his appointment to the Fed, but, the fact he disclosed it after the appointment gives him a label of at least attempting to be transparent. Now, if the rest of the economic team was at least that humble, maybe some of the mistakes that have been made could have been avoided.

[MidnightRambler]

I wish Krugman would stop bad mouthing everything and give us HIS plan for recovery. It's easy to point out problems, not so easy to come up with solutions.

[solvseus]

You haven't been paying attention, because he's been everywhere since before Obama was even in office saying what we should do. Just that very few are listening and almost no one is talking about it, even here. A simple Google search would show exactly what he thinks we should be doing.

[Cogitoe]

Ms. Maddow is the smartest cheer leader I have ever seen, but she needs to put the kool-aide down and start acting like a serious commentator. We do not need an Obama apologist. He may be smarter and more "presidential" than Bush, but he is making some serious mistakes and needs to be called on them.

[lincheryl]

She doesn't always agree with Obama, and has said so. Same for Keith.

[Aranxa]

I love Krugman. He makes so much sense and he's always so flipping cheery.

[RedEric]

Krugman's not alone. Check out what Paglia and Chomsky have to say. Not very flattering.
http://allanerickson.wordpress.com/2009/04/08/right-left-president-is-an-embarrassment/

[ErikW65]

Again, only conversely, Chomsky and other Leftist pundits criticizing a Republican Admin. is not news, but when they criticize a Democrat, then it's a controversy, and so, a story. Basically, if they don't criticize now, then they are losing their only chance to be relevant and marketable. Follow the money.

[marxmarv]

This ain't a football game, son.

[ErikW65]

No opposing punditry, or opportunity to respond from the Obama Admin.?

[kyeblue]

Krugman is bitter at the numbers because the Obama administration didn't want to listen to his radical and implausible proposals. Now he just wants the economy to fail, so that he can say, ahha, I told you.

[RedEric]

Kind of like the Dems and Iraq.

[ErikW65]

Since Krugman isn't saying he WANTS the Obama Admin's plans to fail, only saying he doesn't think their plans will work, I think your metaphor is pretty accurate.

Maybe the Obama Admin's plans to use the power of the Federal Gov't's money to revive the housing and credit markets can be further likened to the Bush Admin's buying off the Sunnis to make the Surge successful?

[ErikW65]

It's rarely a headline that an independent expert agreed with a president. No controversy, no story. If Krugman published as many stories finding reason to be optimistic or supportive, then the word on the street would be that he's "in the tank for Obama." No journalist wants to be called that, and so it seems the flavor of the day is for pundits to show how fair and balanced they are by taking the opportunity to be gloomy about a cloudy issue.

[RedEric]

Krugman joins growing number of Leftist critics including Paglia and Chomsky:

http://allanerickson.wordpress.com/2009/04/08/right-left-president-is-an-embarrassment/

[whatt]

And of course he is the last word, what I don't understand is why he didn't speak up when things started going south, he is so smart, in his mind, why didn't he stop the melt down?

[GirlOutWest]

Whatt, you are so right. Krugman is armchair quarterbacking now, but where was he when the economy was collasping?

[zann]

Do a little research. There is an answer. Like a lot of professional economists he's been warning us for years.

[Witchitalineman]

When Paul Krugman speaks I listen.

[LABC]

He makes sure of it...

[harriscrl3]

Supressing optimism is what Krugman does Best. Everytime I read him or listen to him I get depressed. People were complaining that the American people had no confidence in their economic futures and now that they have little confidence all of a sudden their confidence dont matter.

Kay.

Carol

[Liberal2]

Ummmm, maybe Krugman is describing reality. You prefer fantasy.

[LABC]

He is like the equivalent of "dungeons and dragons" for you, isn't he? The minute he comes out with something on HuffPost, you and the rest of the inner nerds arise, flood pants with white socks and black shoes at the ready, to parrot whatever depressing politically tone deaf big word drivel that he nasally voices. Do you even know what he is proposing and the reality of it getting the legislative support it needs to pass - much less, if it will work?

He does nothing but carp about the President's agenda - but I guess as long as it gets him on TV and in print, that is all that matters, right? Not like he is likely to roll up his sleeves and help solve any of the economics challenges ahead. Reality might mess up his dainty hands...

[kburlz]

Krugman aparently thinks Obama is a dictator and can impose his will and do exactly what Krugman thinks he should do. It's called political reality, Paul.

[Liberal2]

Ummm, no. Krugman is describing what must be done for recovery. What Obama *CAN* accomplish won't be enough.

[LABC]

Paul Krugman trading cards on EBAY...bidding closes tonight!!

[iblog]

Krugman is speaking to people that don't know what the directives are in the administrations policies.

He speaks as though he's out front, but he's listing the current tasks and legislation that is pending without giving the credit where it's due. Very dishonest.

I like that little dig he gave to Geithner when he said something to the effect of "...they're smart guys...they'll tell you themselves..." Orwellian.

He's the Glenn Beck of economics.

[bigsioux]

Too little stimulus, not enough stimulus. More tax cuts, increase taxes. Save the banks, let the banks go under. Create a bad-bank for "toxic" assets, sell them off to private parties at a discount and have the government assume virtually all the risk if the assets tank. I certainly don't know the answer to any of these questions, and I will defer to the likes of Krugman and other well educated economist; but I do wonder where objectivity ends and political ideology begins, or is it the other way around. It is easy to certain of one's opinions, as is often the case with the pundit class. But to be correct is another matter. In the end, I hope Mr. Obama guessed right because that's what it amounts too, an educated guess.