Much pearl-clutching after the statement on This Week by Paul Krugman that the U.S. should allow the government to default on the debt limit rather than allow Republicans to hold New Deal social programs hostage. Former Deputy Treasury Secretary Roger Altman is quick to say he "respects" Krugman but disagrees. I'll just bet you do, Roger!

And a "terrified" FDIC chairwoman Sheila Bair responds by urgently listing the potential effect on the bond market and institutional investors, of course completely missing the point: Would it be the Democrats' fault -- or that of the Republicans who are trying to impose their extremist and anti-democratic beliefs on the majority?

"I'm terrified by a blackmail political system," Krugman responds.

He's exactly right. It's like paying protection to your local thugs to keep your windows from being broken. It's not your fault for not paying, it's their fault for threatening you.

Oh, and here's Digby's take on the whole mishegas.