What Does Economic Nobel Winner Krugman Think of Market Crisis?

"To be absolutely, totally honest I thought this day might come someday, but I was absolutely convinced it wasn't going to be this day," Krugman told the New York Times.

Krugman, 55, also expressed his views on the current market chaos saying it was "terrifying" and forecasted a prolonged recession. "We're going to have a recession and perhaps a prolonged one but perhaps not a collapse," Krugman told Reuters.

Krugman, from the United States, was awarded for formulating a new theory that determines the effects of free trade and globalization, as well as the driving forces behind worldwide urbanization, the Nobel jury said. His theories have explained why worldwide trade is conquered by a few countries that are similar to each other, and why some countries might import the same kinds of goods that it exports, the New York Times explains.

The economics Nobel Prize is the last of the six 2008 Nobel Prizes announced and will also reward his achievement with about $1.4 million dollars.