Reply #18: "Trying to pretend Krugman doesn't understand the difference is absurd." What?

[ProSense]

"You are free to disagree with his arguments and conclusions but it's fucked up to pretend he is stupid and doesn't understand the basics."

Who said Krugman doesn't understand or that I disagree with him? His point in the OP supports clearly states that he understands.

Krugman:

I’m a big advocate of much strengthened financial regulation. One argument I don’t buy, however, is that we should try to shrink financial institutions down to the point where nobody is too big to fail. Basically, it’s just not possible...Bear in mind that this was in the days before the repeal of Glass-Steagal, before finance got so big and wild; the New Deal regulations were mostly still in place. Yet even then major banks were too big to fail.

So I think of the pursuit of a world in which everyone is small enough to fail as the pursuit of a golden age that never was.

You are the one claiming the no one made the argument, which Krugman clearly is responding to. You are the one claiming it is a strawman.