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.