He has detected such. He writes:
Recessions are common; depressions are rare. As far as I can tell, there were only two eras in economic history that were widely described as “depressions” at the time: the years of deflation and instability that followed the Panic of 1873 and the years of mass unemployment that followed the financial crisis of 1929-31.From there he launches into government spending prescriptions that will only make the downturn worse.
Neither the Long Depression of the 19th century nor the Great Depression of the 20th was an era of nonstop decline — on the contrary, both included periods when the economy grew. But these episodes of improvement were never enough to undo the damage from the initial slump, and were followed by relapses.
We are now, I fear, in the early stages of a third depression. It will probably look more like the Long Depression than the much more severe Great Depression. But the cost — to the world economy and, above all, to the millions of lives blighted by the absence of jobs — will nonetheless be immense.
And this third depression will be primarily a failure of policy.
The man sees whats in front of him (even when few others do), but he has no clue as to how to deal with what's in front of him. It's as if he is one of the few to detect a massive hurricane that is about to hit, but then recommends wearing straw hats as protection. Heed Krugman's warning, ignore his mad spending "solution."