The United States which recently went through the turmoil of the 2008 financial crisis found that it was precipitated by the relaxation of government regulations, across a multitude of sectors and government agencies. Krugman is right when he says that the attempt by the government to make housing affordable by offering prime, and eventually subprime mortgages through GSE’s was not the reason for the mortgage crisis. However, Agarwal et al, are also correct when they mention that the defaulting of loans, was partially the result of government interventions in the housing market, which caused a ballooning of subprime mortgages, and credit default swaps. Such is a similar case in India, which recently went through a liquidity crisis, which was resolved through the cancelling of certain types of bank notes, which needed to be exchanged for new ones in a certain amount of time. The replacement of these notes is not necessarily what precipitated the crisis, but rather the timing of the note exchange, and the long lines which one would have to endure an order to receive the new notes, is what led to the banking crisis in India.