Today Paul Krugman won the 2008 Nobel Prize for Economics. Today the markets are up. Why? Well, part of that answer has to do with that same Paul Krugman, Princeton University scholar and New York Times columnist, and what Krugman has been advocating. Oh, did I mention Mr. Krugman appeared yesterday on "Meet the Press" as an avid supporter of Barack Obama, and has been doing so in various other media outlets? Did I mention he supports Obama primarily because of the latter's economic policies, which he contrasts with the Bush/McCain policies (summed up by CNN)?:
Whereas U.S. Treasury Secretary Henry Paulson rejected a "sort of temporary part-nationalization" involving governments giving financial institutions more money in return for a share of ownership, the British government "went straight to the heart of the problem ... with stunning speed."
Krugman said the major European economies have "in effect declared themselves ready to follow Britain's lead, injecting hundreds of billions of dollars into banks while guaranteeing their debts."
"And whaddya know," Krugman continued, "Mr. Paulson -- after arguably wasting several precious weeks -- has also reversed course, and now plans to buy equity stakes rather than bad mortgage securities."
Today's rise in stock values is being attributed primarily to the European approach in this economic crisis. Paul Krugman's Nobel Prize is one more sign that Barack Obama, not John McCain, is listening to the right experts. The market's rise is another sign of the same.