by Calculated Risk on 8/09/2009 10:57:00 AM

From Bloomberg: U.S. Economy May Have Reached ‘Trough,’ Krugman Says

“It’s quite possible, though not certain, that retrospectively, we’ll say that the recession ended in July or August, maybe September,” Krugman said. “My guess is that we’ve bottomed out now, that August was probably the trough month.”
...
A second stimulus package for the economy is still needed, and should be directed at state and local governments as well as infrastructure spending, he said in an interview in Kuala Lumpur. The world economy may face several years of weak growth without falling into a “double-dip” recession, he said.
...
“What we’re seeing is stabilization,” Krugman said. “We’re seeing that the great freefall and the nosedive seems to be over. It’s leveling out but that is very different from returning to normality.”

The free fall may be over, but there are few green shoots at the bottom of the cliff.