Krugman!

We can then model a crisis like the one we now face as the result of a “deleveraging shock.” For whatever reason, there is a sudden downward revision of acceptable debt levels – a “Minsky moment.” This forces debtors to sharply reduce their spending. If the economy is to avoid a slump, other agents must be induced to spend more, say by a fall in interest rates. But if the deleveraging shock is severe enough, even a zero interest rate may not be low enough. So a large deleveraging shock can easily push the economy into a liquidity trap. Claims he gets Liquidity Trap

It was a 30 year effort, ever since 1980, to get this economy into his liquidity trap. This did not happen during the last crash. Go look at the ten year yield since 1980.

So according to his bizarre theory, there are impatient and patient groups of investors. Tell me Paul, how does an impatient trader stay in the market for 30 years waiting for the patient trader to capitulate?

Why did we run the debt until the crash?
Because there is a minimum quant of liquidity that Congress needs to run the cycle. That amount is in the trillions, and we don't have the borrowing capacity anymore. Unfortunately, the Keynesians managed to deliver a 12 member appointed dictatorship to replace what little democracy we had.