Original article here.
So, is anybody surprised? I would hope not. There've been blaring signs all along.
What Krugman is pointing toward is a similar economic situation to Japan's Lost Decade, which was a deflationary recession/depression in that country. The interesting thing is that, particularly in the US, spending has been high for many years. It looks like higher spending to stimulate the economy isn't going to be the answer world governments will choose.
This isn't good news. Japan's econmy hasn't been robust even after the 'end' of the Lost decade. The question is what will, if anything, bring the US economy (and, of course, the world's) out of the current economic crisis?