http://tpmcafe.talkingpointsmemo.com/2008/03/22/paul_krugmans_hypocrisy/Paul Krugman's Hypocrisy
By Jonathan Taplin - March 22, 2008, 12:06PM
Paul Krugman has been a Clinton Restorationist-- a big Hillary supporter and Obama's fiercest critic in the progressive punditocracy. So today he writes a very good piece laying out the regulatory disasters that led to our current economic crisis. He tells a tale of how after the Great Depression, Democrats worked to protect the banking system from runs, by enacting a split of Investment Banks and Commercial Banks. But, Krugman points out.
Wall Street chafed at regulations that limited risk, but also limited potential profits. And little by little it wriggled free — partly by persuading politicians to relax the rules, but mainly by creating a “shadow banking system” that relied on complex financial arrangements to bypass regulations designed to ensure that banking was safe.
But never once in the whole article does he point out who yielded to the enticements of Wall Street--who was responsible for destroying the Glass-Steagall separation of Banks and Investment Banks--Bill Clinton.