Paul Krugman: How did a few failed banks add up to a financial meltdown?

View the entire video at: http://www.zocalopublicsquare.org/
The bubble has burst; the era of sunny-side up capitalism is over. Washington may resuscitate the credit market, but will U.S. politics ever be the same? Paul Krugman, author, Professor of Economics and International Affairs at Princeton's Woodrow Wilson School, and New York Times columnist, visits Zócalo to explain exactly what happened.

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[selfrealizedexile]

A bank is supposed to be a currency warehouse, not a fraudulent borrower, claiming more deposits than it actually owns. "Old-fashioned banks" would fold if they attempted fractional reserve. JP Morgan didn't like that one bit. And now you have men like Krugman rationalizing this fleecing along partisan lines. He will be cast into the abyss of unnoteworthy thinkers after he dies, like Keynes.

[islandmuffin]

Study finds Paul Krugman is the most partisan economist. Krugman was the only economist to "significantly" change his stances for partisan reasons. Krugman has even gone so far as to contradict his own findings to bash Republican politicians. - Brett Barkley, Econ Journal Watch, May 2010

[meccaturbo]

Krugman looks like he has a bad case of hemarrhoids, by the look on his face.

[Foreshadow44]

that is why those who own the banks should have their wealth seized and their children's too (follow the money) and whomever gets it, seize their assets.

[Foreshadow44]

.dot com, realty, and precious metals (gold/silver) all can be made into a bubble and will. So please go buy gold/silver and then discover the prices 'corrects' and actually go down so those who buy near the peak will = most screwed but you will get some gold at least and can play pirate or leprechaun with your friends 'keep your hands off my booty or pot of gold'

[makeithappen42zx]

@finarrykahn13 Inflation is not strictly a money supply problem but also a supply/demand problem with the particular goods in question. Additionally a large monetary base is not money in the economy , you'll need to follow a more precise measure like M2. Lastly there are two kinds of monetary expansion .. that which is reigned back in and that which isn't. Monetary expansion only becomes a problem when the supply is not reigned in during economic expansionary times.

[kidonlyle]

@Sofunnylol

Get an education guy.

[finarrykahn13]

I want to hear an actual Keynesian help me here. How does spending and artificial infusion of credit / monetary supply not result in destructive inflation? Aren't the Consumer Price Indexes going up? Aren't oil and gold and other commodities at all time highs? Can someone explain what increased spending will do but increase consumption and demand, not savings and production? I am an economics neophyte drawn more to Austrian economics, but want to hear the other side of the story fairly.

[meccaturbo]

This guy looks neurotic...like he's got a bad case of hemarrhoids or a metal pipe shoved up his asshole.

[bweazel]

Is he high....? What a horrible speech, decent points, bu bu bu but I just couldn't bear to umm hear him all the uhhh way out.