To my untrained economic eye, no one has been more instructive -- and right -- about our economic situation than Paul Krugman. He's been very tough on the presidential candidates, including Obama, and is again today. But, he really lets McCain have it in today's column. When Krugman tells me who the biggest culprits are in this current economic crisis, I believe him. Krugman today:
Given the risks to the economy if the financial system melts down, this rescue mission is justified. But you don’t have to be an economic radical, or even a vocal reformer like Representative Barney Frank, the chairman of the House Financial Services Committee, to see that what’s happening now is the quid without the quo.
Last week Robert Rubin, the former Treasury secretary, declared that Mr. Frank is right about the need for expanded regulation. Mr. Rubin put it clearly: If Wall Street companies can count on being rescued like banks, then they need to be regulated like banks.
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.
So, McCain has Gramm. Who does Hillary Clinton want back in the mix? Alan Greenspan:
Former Federal Reserve Chairman Alan Greenspan and other economic experts should determine whether the U.S. government needs to buy up homes to stem the country's housing crisis, Democratic presidential candidate Hillary Clinton will propose on Monday.
This might help Clinton get better coverage from NBC's Andrea Mitchell, who is married to Greenspan, but it's hard to see how this helps the economy. The first name on Clinton's list should be Paul Krugman, not Alan Greenspan.
