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Re:93% of 2006 AAA-rated subprime mortgage-backed securities... by tansey on Wednesday April 28, 2010 @03:49PM (#1302502)
That is bunk. That blog article is pulling a few quotes from 2001. In 2001 we had a recession with high unemployment, and lowering interest rates was sound advice.

If you find some quotes from 2004 or beyond where Krugman actually advocates policies that would encourage a housing bubble, then you may have a case.

Re:93% of 2006 AAA-rated subprime mortgage-backed securities... by ksraines on Thursday April 29, 2010 @03:26AM (#1303822)
Please see my comment above. You are evidently confused about the history of the housing bubble: it was beginning just as Krugman was making these comments and writing the article I link to below.

The burden is, in fact, on you to find a link from circa 2004-6 by Krugman calling for restraint of the bubble whose inflation he advocated so fiercely. See above for a more detailed exposition of this point.

Anyways, here is another article from 2002. I don't know how you can get any more incriminating:

Quoting Krugman: To fight this recession the Fed needs more than a snapback; it needs soaring household spending to offset moribund business investment. And to do that, as Paul McCulley of Pimco put it, Alan Greenspan needs to create a housing bubble to replace the Nasdaq bubble.

http://www.nytimes.com/2002/08/02/opinion/dubya-s-double-dip...

BTW, asking for a quote from 2004 calling for the creation of a housing bubble is a bit ridiculous: by then the housing bubble was in full bloom.

http://upload.wikimedia.org/wikipedia/en/c/c1/Median_and_Ave...

As you can see, late 2002 (when the above article was written) would have been just at the beginning of the disaster.

(sorry for the delayed reply; at work all day.)