No wonder Paul Krugman's ire was aroused: this is worse than I had expected. Much worse:
Robert J. Samuelson: Bankrupt Economics: What we are witnessing, in the broadest sense, is the bankruptcy of modern economics.... The $152 billion "stimulus" program earlier this year was a classic exercise in "demand management." It didn't work well mainly because this crisis originated in frightened financial markets.... Unfortunately, we lack experience with stabilizing financial markets, and the issue has been at the fringes of economics...
Do I point out that Ben Bernanke has spent most of his life analyzing the stabilization of financial markets, and that nobody but a blithering idiot would put him "at the fringes of economics"?
Do I point out that we have a lot of experience with stabilizing financial markets--that we dealt with a credit crunch in 1990-92, with exchange rate crises in 1992, 1994-5, 1997-8, 2001-2, plus others that did not become crises, plus a bubble collapse in 2000-2001?
Do I note that economists are now investigating whether the second quarter stimulus program worked better or worse than expected--which means that it worked about as well as people thought beforehand?