Who Has Two Thumbs And Is Wrong About The Financial Crisis? ... This Krug man.

[Ferd Berfel]

http://www.huffingtonpost.com/entry/paul-krugman-is-wrong-about-the-financial-crisis_us_57080537e4b063f854dfa21a




Somebody is wrong on the Internet, and his name is Paul Krugman.

It is hard for liberal America when Krugman is wrong, because he is liberal America’s best — and most important — economic columnist.

In a column on Friday devoted to hitting Bernie Sanders for a long list of transgressions, Krugman said the financial “crisis itself was centered not on big banks but on ‘shadow banks’ like Lehman Brothers that weren’t necessarily that big.”

You read that correctly: Big banks didn’t cause the financial crisis, and Lehman Brothers, which was a shadow bank, known less creepily as a non-bank financial institution, wasn’t even that big.

Lehman Brothers had a peak market cap of $60 billion just 18 months before it collapsed. When it failed, it was the fourth-largest U.S. investment bank, and with $600 billion in assets became the largest bankruptcy in the country’s history.

But never mind the numbers. Even Paul Krugman can agree that Paul Krugman’s column today is wrong.