DeLong's answer

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

That's a bit disappointing, if he is right. I was hoping for a more positive outcome but I suppose that's why it's called a depression.