Krugman: "Too big to fail" is not the problem

Paul Krugman argues that the Fed didn't cause the housing bubble and "too big to fail" isn't responsible for the financial crisis.

Assuming Canada doesn't have a housing bubble, it would also invalidate Ben Bernanke's argument that the housing bubble was caused by a global savings glut. Of course, if the U.S. (and global) housing bubble was caused by a combination of factors, then low interest rates and high global savings could be necessary but not sufficient causes of the bubble.