The good news first: People are finally admitting that austerity measures are not working. Now the bad news: There seems to be little prospect of a near term course change.

This was the month the confidence fairy died. For the past two years most policymakers in Europe and many politicians and pundits in America have been in thrall to a destructive economic doctrine.

According to this doctrine, governments should respond to a severely depressed economy not the way the textbooks say they should - by spending more to offset falling private demand -but with fiscal austerity, slashing spending in an effort to balance their budgets.

Critics warned from the beginning that austerity in the face of depression would only make that depression worse. But the "austerians" insisted that the reverse would happen. Why? Confidence!

http://economictimes.indiatimes.com/features/investors-guide/eurozone-fi...

Another article: http://www.nytimes.com/2012/04/24/world/europe/call-for-growth-puts-pres... and: http://www.moneycontrol.com/news/world-news/spain-downgrade-proof-auster...