Krugman Yesterday

In his Portugal? O Nao! post, Paul Krugman writes:

It’s looking as if Portugal is the next eurodomino... it’s by far the blurriest of the troubled peripheral countries.

What I mean by that is that the Portuguese macro story is harder to tell... There was a lot of private-sector borrowing, but it’s not that easy to explain exactly why.


I don't know which way to go with this:

1. SEE!! Krugman knows it's private-sector debt that's the problem.

2. WHY?? Paul, it's 20, 30, 40 years too late to worry about why.