Krugman on What the Financiers Understand About the Financial Crisis

As usual, the combination of erudition and common sense that Krugman shows is far from common.

But the bankers’ testimony showed a stunning failure, even now, to grasp the nature and extent of the current crisis. And that’s important: It tells us that as Congress and the administration try to reform the financial system, they should ignore advice coming from the supposed wise men of Wall Street, who have no wisdom to offer.