Robert Shiller says we're probably fu**ed

No,
That can't be correct. In 2009 Bernanke saw green shoots and a month ago Geithner welcomed the recovery....

Read between the lines, he is saying the answer to this recession is in government works, investment in public projects and ngos. Corporations have money, but they are not spending. You cannot force a business to hire, but you can invest in government projects that will hire and ngos that will hire instead of hoarding cash. This is common sense and I don't know why the media focuses on corporate stimulus as the answer.

No need to read between the lines. Shiller's very blunt about it. He's also quite wrong. Germany seems to be doing quite well exporting to China, yet our govt now shies away from free trade. The gov't has created a great deal of uncertainty in the business environment. Add to that zero interest rates has caused the part of our population with disposable income not tied to employment(retired or near retired) to cut back their spending because their savings which now earn zero interest can't sustain their previous consumption. This has job implications.

First, corporate stimulus has failed to reverse prevailing unemployment, second export will not save an overleveraged economy faced with deflation and falling real estate prices (Japan). Germany has higher tax rate and a wide net of generous social services, welfare and programs directly benefiting the general populace. Rather than discharge skilled employees, they have furloughed, which leads to certain efficiencies and increased public morale. The divide between the very wealthiest German and the poorest, is a fraction of the United States.

There is a fundamental problem with the United States economy. Wealth, even with the housing bubble, was increasingly concentrated in the hands of very few individuals. Regardless of trade, social stability is compromised by this inequality. This is a massive problem that China is currently wrestling with and ultimately will be a major issues for their national security as unrest grows.

Is Shiller his real last name?

Creating a bunch of fake jobs won't solve anything. People expect way too much of government. Sometimes inaction is the wiser course of action.

'Sometimes inaction is the wiser course of action.'

For certain types of markets I would be inclined to agree. If the gov. just let the RE market alone it would reprice faster and come out from under. Jobs is a different story. You have to find a way to get companies to hire. Payroll tax credits is a better plan than 8K for a home purchase.

If forced to pick, I would agree on the payroll tax.