This piece from Paul Krugman is the rare US view that looks soberly at the limited value of both the latest banking and “stimuless” approaches, describing them for what they’re worth.

Mr. Krugman recognizes this is not a trough that the US can spend its way out of. Instead it must work its way out by job creation focused on a public works 2.0 approach that emphasizes value-add to society’s forward economic footprint (i.e. not roads & bridges). This resolves unemployment, allowing mortgages to be paid, putting a floor in housing and regenerating long term demand for products and services.

Above all, when you build public infrastructure that is designed to serve forward needs of society, society reaps the benefits through lower cost structures to individuals and business, for decades. It’s paving a lasting road that begins with recovery and segues into prolonged expansion.