Reply #2: He's been saying that for a year [View All]

[sandnsea]

This is a blog after one in April where he talked about an inventory bounce.

http://krugman.blogs.nytimes.com/2009/07/18/beware-the-bounce/

No, demand has not picked back up and it won't pick back up until we have higher wages or more credit, preferably the wages. But that doesn't mean that this is a normal economic cycle that can be predicted, especially not in comparison to 1981. This is not 1981, there isn't pent up demand or a generation of boomers turning in their 30s and ready to buy homes and outfit their families. There is a whole different economy coming and I haven't seen any economist tap into what it will look like. It certainly isn't going to show up in traditional inventory.