I’ve posted Entry #70 to my weekly Investing: The New Rules column at the Death by 1,000 Papercuts site. It’s called Making (Some) Sense of Crazy Krugman.
Juicy Excerpt: I have a certain sympathy for Krugman. A lot of people called me loco when I first posted about the dangers of Buy-and-Hold (nowadays, there are more than a few gradually coming around to my point of view). So when someone is almost universally dismissed as a nutcase, I cannot help but try to figure out whether there might be at least a little bit of sense in what he is saying.
And there is one point that absolutely must be advanced in Krugman’s defense. Everything he says is a logical implication of the economic “wisdom” of our time. People laugh at Krugman because he states things plainly and clearly and frankly. But the most popular economics textbooks say the same things using more cautious language. We shouldn’t be laughing at Krugman because he makes things clear. The laughable thing here is the claim that destruction of assets is an economic positive. That claim is economic orthodoxy today anywhere large numbers of liberal economists gather together.