By Bruce B. Brugmann
Columnist Robert Scheer, writing in a Nov. l9th Chronicle op ed, pointed out that former Clinton Treasury
Secretaries Robert Rubin and Lawrence Summers “deserve a great deal of the blame for the radical deregulation of the financial industry that has derailed the world economy.” He said that they should be kept at a safe distance from our nation’s leadership.
He also noted that Timothy Geithner, president of the Federal Reserve Bank of New York, had served under both Rubin and Summers and was a candidate for the Obama Treasury Secretary.
On Friday, Nov. 2l, the Obama camp leaked the word that Summers was expected to be director of the National Economic Council in the White House, the president’s principal economic adviser and policy coordinator, and that Geithner was the likely nomination for Treasury Secretary.
Meanwhile, Heard on the Street column in Saturday’s Wall Street Journal noted that Geithner “in the past espoused many of the views championed by former Federal Reserve Chairman Alan Greenspan in terms of a hands-off approach to market regulation.” Obama is expected to announce his economic team at a press conference on Monday.
In short, the deregulation virus, and the carriers of the deregulation virus in the Clinton administration, are alive and well and thriving in the emerging Obama presidency. Where are the progressive economists from the Joseph Stiglitz/James Gailbraith/Paul Krugman wing of the Democratic Party? After all, the deregulators have been proven to be disastrously wrong about the economic crisis. And the warnings of the progressive economists have been proven to be on target. And their New Deal-type prescriptions are what are needed. Again, this will require that the progressives put strong and unending pressure on the emerging Obama administration, who will be getting pressure from the financial lobbyists pressuring to keep the bailouts coming without proper regulation or requirements. B3
Click here to read Robert Scheer’s timely and prescient Chronicle column: .