Friday, April 10, 2009

Krugman Exposes Larry Summers, et al, and the Not so Boring Banking Industry

Paul Krugman has been the voice crying in the wilderness during the financial meltdown, desperately trying to get the attention of our inexperienced, economically challenged president and his minions as they continue to waste taxpayer dollars propping up failing banks.

In this morning’s op-ed, Krugman examines the history of the banking industry in the United States and reminds readers of how remiss the Obama transition team was in vetting Larry Summers as head of the National Economic Council:
Only a few people warned that this supercharged financial system might come to a bad end. Perhaps the most notable Cassandra was Raghuram Rajan of the University of Chicago, a former chief economist at the International Monetary Fund, who argued at a 2005 conference that the rapid growth of finance had increased the risk of a “catastrophic meltdown.” But other participants in the conference, including Lawrence Summers, now the head of the National Economic Council, ridiculed Mr. Rajan’s concerns.

And the meltdown came.
Read Kruger’s entire column here.

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