Naked Capitalism has the article Krugman v. Morgenson on Too Big to Fail by David Dayen.
The bottom line is that this exhibits pure party-based tribalism. Take whatever half-truth you can turn into a talking point and parade it. And because it comes from an anointed spokesman of the Left in the mainstream circles, the hedged conclusions get spun into iron laws. The Reuters daily roundup Counterparties puts Krugman atop a summary they call “Farewell to Too Big to Fail.” (On the other hand, I was glad to see Bob Kuttner call Krugman out for this, however gently.)
If Krugman wants to become the President’s mouthpiece in the second term, that’s his business. But doing so by fudging the data is pretty weak.
This is the first I have read about this topic. I have a feeling that when I read more news, I am going to hear about Krugman and the GAO report in highly favorable terms. I thought I would post this article on my blog so I would have a record of it as a counterpoint to what is in the MSM.