Paul Krugman: Taming the Beast

[Larkspur]

Taming the Beast

We’re now in the midst of an epic financial crisis, which ought to be at the center of the election debate. But it isn’t.

Now, I don’t expect presidential campaigns to have all the answers to our current crisis — even financial experts are scrambling to keep up with events. But I do think we’re entitled to more answers, and in particular a clearer commitment to financial reform, than we’re getting so far.

In truth, I don’t expect much from John McCain, who has both admitted not knowing much about economics and denied having ever said that. Anyway, lately he’s been busy demonstrating that he doesn’t know much about the Middle East, either.

Yet the McCain campaign’s silence on the financial crisis has disappointed even my low expectations.

And when Mr. McCain’s economic advisers do speak up about the economy’s problems, they don’t inspire confidence. For example, last week one McCain economic adviser — Kevin Hassett, the co-author of “Dow 36,000” — insisted that everything would have been fine if state and local governments hadn’t tried to limit urban sprawl. Honest.

SNIP

Krugman slams McBush and also admonishes both Obama and Hillary about not addressing or misplacing blame for the financial crisis we're in.

[Hand]

1. Now HERE's something scary...

But will that logic prevail politically?

Not if Mr. McCain makes it to the White House. His chief economic adviser is former Senator Phil Gramm, a fervent advocate of financial deregulation. In fact, I’d argue that aside from Alan Greenspan, nobody did as much as Mr. Gramm to make this crisis possible.

That alone is reason enough to vote for ANY Democrat.

[DaveT]

2. kick

this is an important point -- both of our candidates are getting big bucks from the folks who created the economic mess. As always, accepting money is not necessarily selling out.

But it behooves us to keep the pressure on both Senators -- do not just bail out the hustlers, reregulate banking.

Not as exciting as pissing matches about Ferraro and Wright and Tuzla. Much more important.

kick and recommend

[eridani]

3. Bingo

"Last year, there was no question at all about the way Wall Street's financial contributions to the new Democratic majority in Congress helped preserve, at least for now, the tax loophole that lets hedge fund managers pay a lower tax rate than their secretaries.

Now, the securities and investment industry is pouring money into both Mr. Obama's and Mrs. Clinton's coffers. And these donors surely believe that they're buying something in return.

Let's hope they're wrong."

[lark]

4. 50/50

Wall St. is giving to both Dem candidates in almost the exact same amount - both have received over 6 million dollars. McCain has only recvd 1.2 million dollars. So, Wall St. thinks a Dem is going to win and is contributing equally to each of the candidates so no matter which one is ultimately the nominee, the thought is that person is bought. Obama has almost nothing to say about the economy, and certainly never anything radical or even anything that's a big departure from current methods/ways of handling. Where are his polcies on the economy, other than "hope" and "change" but no specifics. I'd like to hear them since there's a better than a good chance that he'll be "our" nominee.

[eridani]

6. He won't do diddlysquat unless pushed hard from below

I am encouraged by the fact that this worked pretty well on FDR.

[JTFrog]

5. I can't wait to hear what he says about Clinton proposing Greenspan lead a foreclosure group. n/t