You can read the entire column here.
Krugman nicely lays out the economic issues in Greece, Ireland and Britain. And he traces it to the deregulation of banking which resulted in the real estate booms both in those places listed above, and here in the United States.
I may have mentioned before a co-worker who is all for completely deregulating banks. The rest of us looked at him with horror and I exclaimed “How exactly do you think we got into the mess in the first place?” If the Bush Administration hadn’t gone full tilt to cowtow to the banks and peel back more regulatory layers then we wouldn’t have seen the tech bubble, the housing bubble, any of the bubbles at all!
Over the past 40 or so years banks and their lobbyists have fought to be deregulated, to buy up smaller banking concerns, merge with insurance companies and it goes on, all to enhance the bottom line for their shareholders. The banks promised us that they’d self-regulate. Yeah, you’re reading me, it’s right up in the category of “I’m not gonna hurt you, I’m just gonna bash your brains the fuck in!”
And it’s only going to get worse if we do nothing. That horrid US Supreme Court ruling in the Citizens United case pretty much sealed the ability of corporations to BUY elections.
I can understand why the Supreme Court did what they did. I’ve discussed it here numerous times that over a century ago, Corporations were endowed with the same rights as a flesh and blood human. The prior notion is nothing but absolute bovine effluent, but the notion has carried forward into case law. And law in general is nothing without it’s archival or case law.
So the reality is, it’s we the people who allowed this to happen. If you have a retirement 401(k) take a look at the prospectus. I’d be willing to bet there’s a bank or insurance company in there hiding in plain sight.
I remember in the 1970’s we had a number of banks to choose from. There was Industrial National, Hospital Trust, Citizens, Peoples, Eastland. Now you’ve got a few credit unionish banks and Bank of America, Citizens, and Sovereign.
Not much choice at all and the banks know this so they’ll try so screw you any way they can. Come on, 1.25% on six month CD? How stingy can you get?
The fix to this is for more citizens to become politically involved. And I don’t mean you necessarily have to join the Democratic or Republican (aka Tea Party) parties. Start a new party, we’ve done it here Rhode Island and for the first time in my memory we had not just two or three candidates for Governor but seven. Seven! A good chunk were independents and for the first time in it’s history, Rhode Island now has Governor Lincoln D. Chafee an Independent!
We need to have so many candidates running for office that it becomes economically infeasible for corporations to buy their way through. We need to recruit people who will tell lobbyists to take a hike. And we need to make it so ALL candidates accept public financing of their campaign. That’s the only way we’ll ever fix this mess.
4 thoughts on “NYT’s Krugman “Their Own Private Europe””
I think you and your coworkers were absolutely right to lambast the deregulatory buffoon in your midst. Letting people ignorantly espouse such drivel allows it the patina of a sensible position, which it clearly isn’t. We all know where Libertarian values leas, straight into the economic toilet.
what a mess it all is.
Tis truly a cluster!!
I think Krugman has lost his objectivity. The root problem is debt and future obligations. This is true for Spain, Ireland, Greece and Portugal.
The bank bailouts are less than 10% of the debt liabilities (present and future) in both Greece and Ireland. Blaming the banks or lack of banking regulation is a red herring.
Too much borrowing and too much spending are the culprits. IMO. YMMV. CCBS.