Thanks for the explanation. It helps me to understand why so many economists (and politicians) seem to treat our present situation as some sort of short-term technical glitch that can be straightened out with the right kind of fiscal kick. I suspect they are wrong, and that we face deeper structural problems. Indeed, it seems obvious that we do.

I have little confidence in the putative experts because of a long list of seemingly elementary fallacies promulgated by many mainstream economists. Notable among these are the idea that spending causes prosperity, the notion that economic "stimulus" is beneficial, and a persistent conflation of trade deficits with indebtedness. Perhaps most damning is the simple observation that, though people have long been spending beyond their means, and saving more is the obvious antidote, this solution is vehemently opposed by the conventional wisdom. They seem immune to the argument that, while increased savings will result in a contraction of consumer product companies, this is not a bug, but a feature---a painful one, to be sure, but ultimately unavoidable. Seen from this perspective, the present attempts to limit the severity of the recession are not only misguided, they are probably counterproductive.

I do expect to take a course in this at some point, by the way, just for fun (and it really will be only for fun; I'm a 35-year-old physics Ph.D. with little to gain from further formal schooling). Unfortunately, my intuition is that "rigorous macroeconomics" is an oxymoron, and that much of the subject as presently taught is a hopeless lost cause. I hope I am wrong...

Maybe a hobbyist shouldn't be suggesting that Nobel prize winners be put in an asylum ;).

Oh, I've read too many of Krugman's essays to heed that warning. :-)