Paul Krugman

The bankers are endangering innocent people, their pals are roughing up the law, and the people who should be helping out are sitting on the sidelines doing nothing You can almost hear Tex Ritter singing "Do Not Forsake Me Oh My Darlin'," the theme song from High Noon.

You remember High Noon. That's the movie where Gary Cooper plays Will Kane, a retired gunslinger who can't find anybody to help him defend the town from a dangerous gang. In fact, the townspeople give him almost as much trouble as the gang does.

The financial system has its own sheriffs, and bankers behaved like an unruly mob with one of them this week. Meanwhile Democrats were characteristically diffident and Republicans formed a stone-throwing mob of their own.

Red Lights Everywhere

The lawmen - both women, in this case - were being baited, taunted, and thwarted at a time when the economy's dashboard is flashing red with warning signs. A lot of people think Wall Street banks are healthy again because it's making a lot of money. But they were making lots of money right before the last crash, too.

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Heard any good jokes lately? This headline was making the Internet rounds yesterday:

"Sen. Conrad: Extend All Tax Cuts; Time to Get 'Serious' About Deficit."

It's easy to see the humor in that. It's almost like saying you're serious about saving money but don't want to put any more pennies into the piggy bank. But here's what isn't so funny: Most reporters and politicians agree that Kent Conrad is "serious."

So-called "deficit hawks" like Conrad, Erskine Bowles, and Alan Simpson aren't just unserious. They're radicals. Their positions are an extreme departure from the philosophy of government that's guided American policy for a century. They're promoting an upward redistribution of wealth that would change the shape of our society forever. They're want to weaken a social contract that's existed since the Presidency of Franklin D. Roosevelt and dismantle the economic principles we've had since Teddy Roosevelt. more »

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Now that Larry Summers is leaving, the President has a decision to make. His choice of a replacement will send a signal about the next two years of economic policy. That signal can restore consumer confidence and reinvigorate the electorate, or it can lead to even more discouragement and despair. Today unnamed Administration officials floated the idea of naming a corporate executive to the position. That's a trial balloon that should be punctured immediately.

The thirty-year-old law school graduate who asked the President yesterday, "Is the American dream over for me?" might interpret a choice like that as a 'yes' - unless he also happens to be a Fortune 500 CEO. Fortunately, there are much better candidates to be found elsewhere. more »

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Mort Zuckerman's recent opinion piece in the Financial Times, "Obama needs to stop baiting business," is a tawdry, sorry spectacle. Paul Krugman's already explained how Zuckerman, the publisher of US News & World Report and the New York Daily News, distorted the President's words with a little Andrew Breitbart-style editing. While Zuckerman's proclivity for truth-twisting isn't a complete surprise, here's what is: If he's not lying about how he and his fellow CEOs are managing their businesses, then he and his friends are also incompetent executives.

In fairness to Zuckerman, let me be clear from the outset: I don't think he's an incompetent executive. more »

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Fareed Zakaria is an interesting writer who says some sensible things, as when he called the intensity of the war in Afghanistan "disproportionate" to the threat. more »

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Alan Greenspan testifies before the Angelides Commission on Wednesday. Without wishing him any personal ill will, let's hope he gets a grilling. We come not to bury Greenspan, but to ... well, actually we do come to bury him. For the greater good of all, he and the radical philosophy he represents must be exposed for all to see.

Paul Krugman observed the other day that Greenspan is "still not a mensch," and that's putting it mildly. Greenspan's engaged in a full-scale media blitz to convince the public that he still deserves to be called the "Maestro," s he once was by an adoring press and DC establishment. But underlying Greenspan's words and deeds, almost invisibly, is a extremist philosophy that has captured financial policy. more »

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Do homeowners who are underwater on their mortgages deserve to lose their homes? more »

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When I worked in the Financial District back in the nineties, the big-shot investment types loved to talk about accountability. Almost all male, they loved macho posturing. They got big money because they took big risks, they'd say. They were the Danger Boys. They had to lay it all on the line every day.

But if there's one thing we've learned in the past couple of years, it's that Wall Street lives in a No-Accountability Culture. It's No Risk, All Reward. more »

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People are saying that the so-called Cadillac tax "might fall flat" and "has real problems."  And those are its defenders.  I can't remember any new policy in recent history whose own advocates had so many complaints with its design. more »

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The progressive  "journo/blogospere" is sharply split over the Senate health bill.  Some, like Jane Hamsher and more »

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