Liberals love to blame any wrinkle or failing in any area of the economy to "deregulation", despite the fact that regulations continue to pile up quickly whenever Congress is in session. "Deregulation" is a convenient scapegoat that is automatically accepted by liberal lackeys who have been led to believe that only the all-knowing, all-caring government can prevent corporations from bilking the innocent populace.
Situations when regulation has created economic nightmares - such as the mortgage fiasco - are simply treated by liberals as if they never happened. "Barney who?" "What regulation?" "Roll the dice?" "Franklin Raines?"
Krugman's a hack writer for a hack newspaper - he's just telling the readers what they will pay to hear.