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View Diary: EPIC FAIL! Right Wing Media Falls For Satirical Piece About Paul Krugman Filing For Bankruptcy (143 comments)

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  •  And the story just Sounds So Right (9+ / 0-)

    http://dailycurrant.com/...

    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."

    When someone is impatient and says, "I haven't got all day," I always wonder, How can that be? How can you not have all day? George Carlin

    by msmacgyver on Mon Mar 11, 2013 at 12:47:49 PM PDT

    [ Parent ]

    •  There is a HUGE economic joke in this article (27+ / 0-)

      The "rare Portuguese wines and 19th century English cloth" is an insider economic joke about comparitive advantage in trade! It's one of the first examples David Ricardo wrote in his book "On the Principles of Political Economy and Taxation" in an example involving England and Portugal:

      "In Portugal it is possible to produce both wine and cloth with less labor than it would take to produce the same quantities in England. However the relative costs of producing those two goods are different in the two countries. In England it is very hard to produce wine, and only moderately difficult to produce cloth. In Portugal both are easy to produce. Therefore while it is cheaper to produce cloth in Portugal than England, it is cheaper still for Portugal to produce excess wine, and trade that for English cloth. Conversely England benefits from this trade because its cost for producing cloth has not changed but it can now get wine at a lower price, closer to the cost of cloth. The conclusion drawn is that each country can gain by specializing in the good where it has comparative advantage, and trading that good for the other."

      Here is the link, can't hyperlink from my phone:

      http://en.wikipedia.org/...

      -1.63/ -1.49 "Speaking truth to power" (with snark of course)!

      by dopper0189 on Mon Mar 11, 2013 at 02:40:43 PM PDT

      [ Parent ]

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