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Maybe the three of us should start a "Draft Krugman" campaign and website to rally the progressive left to push for Obama to pick him as Treasury Secretary? I agree, AKA, I'm irritated that his name hasn't even come up on a list of potential candidates, and the man just won the NOBEL PRIZE for economics earlier this year! I think the reason is that he's too left-of-center, too Keynesian or Galbraithian (hey, I just invented a new word!), too critical of the laissez-faire market fundamentalism that has ruled Wall Street for 30 years (but especially the past 10). His selection would almost certainly send the street and the big brokerages and investment banks into a tizzy, but like I mentioned earlier that would be all the more reason to choose him, rather than some Goldman Sachs, neoliberal douchebag, which is almost certainly what we will actually get.
Robert Reich would be a great choice too, as he's definitely left-of-center and a strong critic of the neoliberal consensus of recent decades. Or he could reprise his role as Labor Secretary from the Clinton Administration, but really turn it into an activist, outspoken role this time to really fight for labor rights and unions.