Paul Krugman on Mitch McConnell's 'shameless performance'

[babylonsister]

http://www.nytimes.com/2010/04/16/opinion/16krugman.html?hp

The Fire Next Time

By PAUL KRUGMAN
Published: April 15, 2010

snip//

It’s a truly shameless performance: Mr. McConnell is pretending to stand up for taxpayers against Wall Street while in fact doing just the opposite. In recent weeks, he and other Republican leaders have held meetings with Wall Street executives and lobbyists, in which the G.O.P. and the financial industry have sought to coordinate their political strategy.

And let me assure you, Wall Street isn’t lobbying to prevent future bank bailouts. If anything, it’s trying to ensure that there will be more bailouts. By depriving regulators of the tools they need to seize failing financial firms, financial lobbyists increase the chances that when the next crisis strikes, taxpayers will end up paying a ransom to stockholders and executives as the price of avoiding collapse.

Even more important, however, the financial industry wants to avoid serious regulation; it wants to be left free to engage in the same behavior that created this crisis. It’s worth remembering that between the 1930s and the 1980s, there weren’t any really big financial bailouts, because strong regulation kept most banks out of trouble. It was only with Reagan-era deregulation that big bank disasters re-emerged. In fact, relative to the size of the economy, the taxpayer costs of the savings and loan disaster, which unfolded in the Reagan years, were much higher than anything likely to happen under President Obama.

To understand what’s really at stake right now, watch the looming fight over derivatives, the complex financial instruments Warren Buffett famously described as “financial weapons of mass destruction.” The Obama administration wants tighter regulation of derivatives, while Republicans are opposed. And that tells you everything you need to know.

So don’t be fooled. When Mitch McConnell denounces big bank bailouts, what he’s really trying to do is give the bankers everything they want.

[napi21]

1. I was thrilled when Mitch's home town newspaper in Ky derided him

for lying to the publoic in his speech on the Senate floor! I'm not dismissing Krugman;s statement, but it's in Ky where they vote for or against him, and I'd bet aul doesn't have many fans in Ky!

[polichick]

2. Wow, that's good to know! nt

[babylonsister]

3. Here's the thread...

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x8154623

[lunatica]

4. And to make his day worse, Rachel Maddow is also exposing him

He's looking pastier and more and more like a dim lightbulb lately. His perspiration is making him look oily and fearful.

[saltpoint]

5. McConnell is going to lose this battle.

He may already have lost.

Recommended.

[CTyankee]

8. From your lips to god's ear saltpoint!

It will be my distinct pleasure to dance on his political grave!

[saltpoint]

10. Hey there. Yep. Plus, McConnell is frightfully dull to listen to.

I wouldn't miss him one bit if he weren't in the Senate at all!

:hi:

[CTyankee]

11. He is one of the ugliest men I have ever seen...nt

[flpoljunkie]

6. Regulation, regulation, regulation!

'It’s worth remembering that between the 1930s and the 1980s, there weren’t any really big financial bailouts, because strong regulation kept most banks out of trouble.' - Paul Krugman

[lamp_shade]

7. K&R

[Spazito]

9. Kick

:kick:

Recommended.