Looks like we know who Paul Krugman expects to win the 2012 presidential race. At a conference hosted by the Association of National Advertisers, Huffington Post CEO Eric Hippeau catches a snippet of Kurgman's speech:

Paul Krugman at #ANAmarketers : expect unemployment to improve after President Palin's first term!less than a minute ago via Echofon

Krugman is no fan of Palin, so it seems like pessimism has gotten the best of him. Here's a glimpse of reactions on Twitter:

@EMMACNYC Too many things to say about this. Krugman (fail) Prez Palin (not gonna happen). One thing right - it won't be this Prezless than a minute ago via web

Paul Krugman is wrong. Palin isnt the one, its Chris Christie in 2012: http://read.bi/9TW0rP though he's right about  the job market.less than a minute ago via TweetDeck