Nobel Prize Winner's Recession Solution? $5 Trillion Govt. Bailout

A stimulus plan of that size is probably not needed, but Krugman said he believes the $775 billion proposal from President-elect Barack Obama isn't big enough.

"We're not in a depression. But we are in a situation where the normal tools don't work and we're back to 1930s-type environment," Krugman said in an interview with ABC News. "Government spending is the only surefire way to create employment."

Well, if there's one thing we can count on it's the competency and efficiency of government solutions.