They’re starting to recognize the depression…
For the last few years, we’ve been in the initial stage of a prolonged financial crisis, but its just now that many popular pundits are starting to recognize the fact that we’ve entered a new depression. In particular, even Krugman is now saying that the depression has pretty much arrived despite the massive deficits and government spending (or perhaps because there wasn’t enough spending).
In the meantime, job growth isn’t exactly keeping up with demand and real estate shows no signs of recovery. Financial and health-care reform bills in Congress don’t seem to really address the fundamental dysfunctions of our institutions, but there doesn’t seem to be much in the way of a legislative alternative… At least not one that is politically viable.