Postmodern recessions – Paul Krugman – Op-Ed Columnist – New York Times Blog

Link: Postmodern recessions – Paul Krugman – Op-Ed Columnist – New York Times Blog.

blah, blah, blah… except this seems to make a bit of sense. We have flattened out the recessions, but they last longer. My big question is that it appears that the sub-prime mess has gotten us into this slump, which affected housing, which affected consumer spending, which affected all of us, and since sub-prime lending is not interest rate driven, could it be that cutting interest rates will not have a positive effect on pulling us out of the slump?