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Krugman files bankruptcy

Economist and columnist Paul Krugman declared personal bankruptcy today following a failed attempt to spend his way out of debt.

In a Chapter 13 filing to the United States Bankruptcy Court in the Southern District of New York, lawyers for Krugman listed $7,346,000 in debts versus $33,000 in assets.

The majority of his debts are related to mortgage financing on a $8.7 million apartment in lower Manhattan, but the list also includes $621,537 in credit card debt and $33,642 in store financing at famed jeweler Tiffanys and Co.

The filing says that Krugman got into credit card trouble in 2004 after racking up $84,000 in a single month on his American Express black card in pursuit of rare Portuguese wines and 19th century English cloth

Rather than tighten his belt and pay the sums back, the pseudo-Keynesian economist decided to "stimulate" his way to a personal recovery by investing in expenses he hoped would one day boost his income.

Cockroaches and Creditors

Between 2004 and 2007 Krugman splurged on expensive cars, clothes, and travel in hopes that the new lifestyle would convince his bosses at the New York Times to give him a giant raise.

"They say always dress for the job you want," Krugman explains. "So I thought maybe if I showed up in $70,000 Alexander Amosu suits they would give me ownership of part of the company. If I had only been granted a sliver of the New York Times Co., I could have paid everything back."

Even after he realized an equity stake was not going to happen, Krugman continued to spend wildly hoping his bling and media appearances would increase demand for his personal brand and lift his book sales.

His biggest mistake came in 2007, when at the height of the financial bubble he decided to invest in high-end real estate in New York City. His multi-million dollar apartment lost 40 percent of its value just months after its purchase, and has been underwater ever since.

"You'd think a Nobel Prize winning economist could recognize a housing bubble," says Herman Minsky, a retired television executive who purchased Krugman's home at a huge discount. "But hey, I'm not complaining."

Conscience of a Fraud

Krugman, a renowned trade economist, joined the New York Times as a columnist in 2000. Since the start of the financial crisis he as used the platform to argue vociferously for what he terms Keynesian deficit spending.

However, Keynes did not advocate using debt financing to stimulate the economy. Rather, he argued that government should save in the good times and spend in the bad.

Through his lawyer, Bertil Ohlin, Krugman explains that despite his travails with spending and debt in his personal finances, he stands by his pseudo-Keynesian policies.

"I still defend my analysis that on the macroeconomic level sovereign debt crises can be fixed by increasing government borrowing to lift aggregate demand. I admit, however, that on the microeconomic level this strategy has failed spectacularly."

by Anonymousreply 2503/12/2013

OP = moron

by Anonymousreply 103/07/2013

Why is OP a moron? Because he posted this article?

I'm a big fan of Krugman, but if this story is true he's completely wrecked himself.

by Anonymousreply 203/07/2013

Daily Currant =/= The Onion. Subtle. Humor..

by Anonymousreply 303/08/2013

R2 = CLUELESS re: Daily Currant

by Anonymousreply 403/08/2013

Nonsense. MOre conservative "Humour"

by Anonymousreply 503/08/2013

Wow, R2 is a moron too.

Do you believe everything you read on the internet?

You couldn't tell this was satire?

by Anonymousreply 603/08/2013

Oh R2, come on - would Paul Krugman really declare bankruptcy? Think before you post.

by Anonymousreply 703/08/2013

Really, really bad satire... pathetically vindictive and ignorant...

by Anonymousreply 803/08/2013

You know what? I believed it until I got to the article about the Catholic Church being anti-semetic for not considering a Jew for Pope, and the article about Mitt Romney stating he could have won if he had bought the minorities "buckets of fried chicken".

I'm slow, I know that.

by Anonymousreply 1003/08/2013

[quote]...in pursuit of rare Portuguese wines and 19th century English cloth.

What? No tulips?

by Anonymousreply 1103/08/2013

Marry me, R11!!

by Anonymousreply 1203/08/2013

R9 = moron

by Anonymousreply 1303/08/2013

Oh, I get it! The joke is that Paul Krugman is really, really bad with finances, because he opposes the batshit crazy rantings of Austrian economists.

Which is, instead of funny, just sad and obvious.

by Anonymousreply 1403/08/2013

LOL

And I like Krugman.

by Anonymousreply 1503/08/2013

R4,6,7...bite me assholes. Not everyone knows every parody website. Cunts.

by Anonymousreply 1603/08/2013

The Daily Currant's satire is so weak that it's often difficult to tell their articles are attempting to be satirical. This is actually one of their more obvious attempts.

by Anonymousreply 1703/08/2013

r2, are you THAT stupid?

Really??????????

by Anonymousreply 1803/08/2013

R17, they've fooled me before, too.

by Anonymousreply 1903/08/2013

morons

by Anonymousreply 2003/08/2013

The Boston Herald posted this as fact today. The NYTimes owns the BH.

That just shows how stupid they are.

by Anonymousreply 2103/12/2013

The Daily Currant articles seem like they are just plain contrafactual. An element of humor would make them more recognizable as satire.

by Anonymousreply 2303/12/2013

R23-

Pointing out how ridiculous Krugman is in believing that you can "spend your way out of debt" must be over your head. Anyone who knows anything about economics thinks this is hilarious.

The fact that that The Boston Globe - a subsidiary of the NYTimes- picked this story up as factual just makes it funnier. Krugman is a joke.

by Anonymousreply 2403/12/2013

R24 just compounds his idiocy by braying it to the world.

Seriously, you're an idiot, just as the person who wrote this 'satire' is (as are all who actually believe it).

Mocking those who don't understand macro-economics (like you) is getting to be a full time job.

Here's a hint, R24: Macro-Economics is not Fiscal Policy is not plain-old Economics.

Krugman isn't the joke here: it's you and ignorant tools like you.

by Anonymousreply 2503/12/2013
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