In Myths Of Austerity, Paul Krugman again explains why it makes no sense to cut deficits now when the economy is still in recession. Remember the operative word is now. In case you didn’t see that, I am emphasizing the word NOW.  So, when you read Krugman’s column don’t skip over the part where he says we shouldn’t cut the deficit NOW.

He realizes, of course, that no amount of rational argument will prevent even supposedly smart people from believing in their myths.

The common wisdom of those who know nothing seems to trump that of people who actually know what is going on.  This seems to be a worldwide disease.  No amount of past history as explained by Krugman will deter people from believing what they seem to want to believe.

From an investor’s point of view, we might as well resign ourselves to the fact that governments around the world will do the stupid.  We just have to wait for the investment opportunity that these actions will make for us.

We have to pull up our socks to make sure we can make it through to other side of this opportunity so that we can reap the benefits.