Liberals flock to Krugman for the same reason communists flocked to Lysenko. He lends the veneer of respectability to their dangerously crackpot ideas.
We call this thing an economic crisis but really, it's a political crisis. Failure by the politicians to keep good regulations in place and the Democrats' idea that Democracy means "every ghetto dweller gets a house" led to the whole mess. It's all a political crisis. Starvation, all over the world is always due to politics. Economic cycles are not due to politics, they are real and they occur with some other cycles best measured by Astronomers and Physicists but they are exacerbated and volatility is made worse by the politicians. I know these things and I have spoken
Unless someone indoctrinated garbage like "gov intervention is the solution" in your simple head... ...it's simple to see that the crisis was brought about BY govt intervention in the first place.