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This one is a doozy. Krugman called for low interest rates in 2001 precisely to stimulate housing, even calling for a housing bubble (this was “a joke,” he later claimed) in 2002. Now he says the artificial stimulus to housing had to do with crooked Wall Street shenanigans, and had nothing to do with the Fed or government policy at all.

We ain’t having it.

Krugman Column

“The Big Short, Housing Bubbles, and Retold Lies” (Dec. 18, 2015)

Contra Columns

“Did the ‘Repeal’ of Glass-Steagall Have Any Role in the Financial Crisis? Not Guilty. Not Even Close,” by Peter J. Wallison

‘Repeal’ of Glass-Steagall Irrelevant to Financial Crisis

The Glass-Steagall Myth Revisited

“Krugman’s Intellectual Waterloo,” by Daniel Sanchez

“Housing: Too Good to Be True,” by Mark Thornton

“Did the Fed, or Asian Saving, Cause the Housing Bubble?,” by Bob Murphy

Books Mentioned

Meltdown (featuring a foreword by Ron Paul), by Tom Woods

Rollback, by Tom Woods

Hidden in Plain Sight: What Really Caused the World’s Worst Financial Crisis and Why It Could Happen Again, by Peter J. Wallison

Related Episode

Ep. 561 (The Tom Woods Show) Capitalism: Not Guilty of Creating the Housing Bubble

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