Economist Paul Krugman said America risks a Japanese-like "lost decade" unless more drastic action is taken to stimulate the economy and clean up banks burdened by bad assets. He made his remarks to a small group of reporters in Beijing. Reuters reported:
"We're doing half-measures that help the economy limp along without fully recovering, and we're having measures that help the banks survive without really thriving," Krugman said. "We're doing what the Japanese did in the nineties."
"A second stimulus is becoming clearly urgent. They need a very, very strong stimulus."
"It's clear the administration won't take radical action to strengthen the banks any time soon."