Charlie Rose talks to Paul Krugman, in this interview we see an opinion that is contrary to the previous interview with Pete Peterson in which higher debt levels are encouraged. This is a fascinating opportunity to look at two sides of financial thought, that of the practitioner and that of the academic.

Peterson is totally adverse to defecits whereas Krugman is happy to see them baloon in order to get the Keynesian reaction in the market that he believes will come about, so now we have a grand scale and real life experiment, something that hasn’t really existed since the 30’s, that of seeing what comes about as a result of massive bailout plans when markets collapse, my hope lies with Krugman but by heart is with Peterson.