Note to Krugman: Ronald Reagan Didn’t Do it

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


years.

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.