Paul Krugman has got to be kidding in his Aug. 5 column, “Obama succeeds on financial reform.”
While blaming only the bankers for putting people into mortgages they couldn’t afford, he conveniently forgets the biggest culprits of our financial meltdown were the politicians who demanded banks make those high-risk loans in the first place. Congressmen Chris Dodd and Barney Frank, who had been breathtakingly negligent in their promotion of substandard lending, were the unrepentant foxes put in charge of fixing their own career-ending hen house.
Dodd-Frank does nothing to eliminate “too big to fail” banks. In fact, it expands the concept to other industries at even further risk to taxpayers. Nationalizing failed organizations as government-managed entities, as Krugman suggests, would only result in compounded failures. A problem caused by the gross negligence and incompetence of pandering politicians and the advocacy groups that lobby them has not been fixed by Dodd-Frank. The fact is, we had all the regulations already in place to have prevented the financial meltdown. Thanks to political interference, in the name of equality of course, they weren’t used.