New York Times columnist Paul Krugman went after Minnesota conservative blog Powerline for criticizing Krugman’s 2005 column warning of a housing bubble that was about to burst.

Powerline’s John Hinderaker wrote at the time: “[T]here is little reason to fear a catastrophic collapse in home prices. Krugman will have to come up with something much better, I think, to cause many others to share his pessimism.” They rip apart Krugman for a column that was right on the mark.

That bubble has, of course, burst. Inside, read Krugman’s conclusion.

Meanwhile, the U.S. economy has become deeply dependent on the housing bubble. The economic recovery since 2001 has been disappointing in many ways, but it wouldn’t have happened at all without soaring spending on residential construction, plus a surge in consumer spending largely based on mortgage refinancing. …. Now we’re starting to hear a hissing sound, as the air begins to leak out of the bubble. And everyone – not just those who own Zoned Zone real estate – should be worried.

Someone got it right and someone got it wrong. It looks like TIME magazine’s 2004 Blog of the Year missed the mark.