MercoPress. South Atlantic News Agency

Krugman: no return to Marx but to Franklin Roosevelt

Paul Krugman, who won this year's Nobel Prize for economics, told CNBC that the Treasury Department's move to inject banks with 250 billion US dollars is better than the original bailout plan.

"In the last six days this thing has come together with a plan that really does address the critical problem of inadequate capital at the banks (and) addresses the need for guarantees to calm the markets down. We don't know this is going to work, I wish we were sure, but this is a much better. For the first time I'm starting to feel that policy is really getting some traction on the crisis." The New York Times opinion editor columnist also explained that the US government needed to intervene, "This is not a case for socialism; it's a case for regulation, oversight and for government-led rescues when there's an emergency. We're not going to go back to Karl Marx, but we are going to rediscover some of the things Franklin Roosevelt learned 75 years ago."