Krugman flavor of the month

In truth, I did not foresee the scale of the catastrophe; I was thinking mainly of the direct impact of a housing bust on investment spending, with only a nod to possible effects on consumer demand, and no sense at all of how fragile the financial system was. But I was a lot closer to understanding the real risks than, apparently, anyone at the Fed. Krugman 

He is a propositon proposer, often taking many sides, and seing how they pan. So we can always pick a Krugman that matches our theory.

In this case, both Krugman and the Fed were right, the bust in 2008 was not caused by housing price collapse in 2006.  What caused the crash? Decide your cause, then search out a matching Krugman for support:

But we’re living in a world in which oil prices keep setting records, in which the idea that global oil production will soon peak is rapidly moving from fringe belief to mainstream assumption. Krugman