Visions of the financial crisis and solutions

Edward Luce provides a good description of the different views on the financial crisis.

The Purgative view that believes that the excesses of the past now have to be purged from the financial system. This would be the Republican view that debt has to be reduced and that government excesses have to be eliminated.

The Restorative view believes that Keynesian policies need to be employed to return us to the pre-crisis environment. This would be the current Administration's view.  If deficit financing and government spending is used correctly, the economy can be placed back on trend.

The New Foundations view states that the economy is flawed and needs to be adjusted through new policies which look at intensive development through skills, technology, infrastructure and new polices that adapt to the new global environment.The economy is broken and needs an overhaul.

Some of these views intersect, but they lay-out alternative approaches to dealing with the crisis and the economy in general. There is  no consensus on what path the future should take.