By Ben Cohen
Robert Scheer makes a convincing argument that Paul Krugman’s latest NY Times article on Reagan’s culpability over the financial crisis is not correct:
It is disingenuous to ignore the fact
that the derivatives scams at the heart of the economic meltdown didn’t
exist in President Reagan’s time. The huge expansion in collateralized
mortgage and other debt, the bubble that burst, was the direct result
of enabling deregulatory legislation pushed through during the Clinton
Ronald Reagan’s signing off on
legislation easing mortgage requirements back in 1982 pales in
comparison to the damage wrought 15 years later by a cabal of powerful
Democrats and Republicans who enabled the wave of newfangled financial
gimmicks that resulted in the economic collapse.
Reagan didn’t do it, but Clinton-era
Treasury Secretaries Robert Rubin and Lawrence Summers, now a top
economic adviser in the Obama White House, did. They, along with
then-Fed Chairman Alan Greenspan and Republican congressional leaders
James Leach and Phil Gramm, blocked any effective regulation of the
over-the-counter derivatives that turned into the toxic assets now
being paid for with tax dollars.
Ben Cohen is the editor and founder of The Daily Banter. He lives in Washington DC where he does podcasts, teaches Martial Arts, and tries to be a good father. He would be extremely disturbed if you took him too seriously.