Paul Krugman: Bad Times Now “Baked In”

Nobel Prize winner says "worst recession in 25 years" is a sure thing.

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Unemployment report fallout: Nobel Prize winner and New York Times blogger/op-ed columnist Paul Krugman says today we need "big fiscal stimulus, now now now."


The unemployment rate has now risen more than 2 percentage points from its pre-recession low. In 1990-1992 the unemployment rate rose 2.6 percentage points. Given what’s happening to retail sales, manufacturing, and so on, it’s now a certainty that unemployment has a lot further to rise. So the “worst recession in 25 years” thing is now baked in. The only question is whether we hit “worst slump since the Great Depression” territory.