Krugman is obviously smart, as well as arrogant and a liberal shill. But that's not the problem.

The issue is that he, and the economics establishment led by Helicopter Ben, never met a rate cut they did not like. Cheap money and credit are the fix for every problem. Today many recognize Greenspan held rates too low for too long. At the time, Krugman opposed rate increases from those low levels. He and his ilk fail to see any connection between destructive booms and the cheap credit they promote.