Brad DeLong has solved the financial crisis (co-opting the help of Keynes, Bernanke, Trichet, Brown, King, Geithner and Summers).
I must admit the conclusion he came to was not the one I expected. Note particularly that:
- he disagrees with me on crowding-out - he thinks there is still net business investment to be crowded
- regardless, he believes that business investment will not be a substantial source of demand in the near term