It doesn't take a very intelligent person to smack down Paul Krugman, the guy is an idiot, but it is wonderful to see him get so obliterated by a smart person. Then the Nobel Laureate responds, hilarity ensues.
Start at the 38th minute to see the fun.
Gracias Senor Schwartz!
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There are very few financial problems that can't be solved by a suitable application of asset bubbles.