Arnold Kling digs up this Paul Krugman chestnut from 2002:

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.

Oy. Might want to remember that sentence next time you consider any of Krugman’s economic advice.

(via Moynihan via McArdle)