Krugman: Reagan And His Advisers Were Prime Villains Behind The Financial Mess We’re In

“This bill is the most important legislation for financial institutions in the last 50 years. It provides a long-term solution for troubled thrift institutions. … All in all, I think we hit the jackpot.” So declared Ronald Reagan in 1982, as he signed the Garn-St. Germain Depository Institutions Act.

He was, as it happened, wrong about solving the problems of the thrifts. On the contrary, the bill turned the modest-sized troubles of savings-and-loan institutions into an utter catastrophe. But he was right about the legislation’s significance. And as for that jackpot — well, it finally came more than 25 years later, in the form of the worst economic crisis since the Great Depression.

“This bill is the most important legislation for financial institutions in the last 50 years. It provides a long-term solution for troubled thrift institutions. … All in all, I think we hit the jackpot.” So declared Ronald Reagan in 1982, as he signed the Garn-St. Germain Depository Institutions Act.

He was, as it happened, wrong about solving the problems of the thrifts. On the contrary, the bill turned the modest-sized troubles of savings-and-loan institutions into an utter catastrophe. But he was right about the legislation’s significance. And as for that jackpot — well, it finally came more than 25 years later, in the form of the worst economic crisis since the Great Depression.

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General Rick Sanchez calls for War Crimes Truth Commission

In front of a packed audience tonight at the Times Center in New York City, General Ricardo Sanchez, the former commander of all coalition forces in Iraq, called for a truth commission to investigate the abuses and torture which occurred there.

The General described the failures at all levels of civilian and military command that led to the abuses in Iraq, “and that is why I support the formation of a truth commission.”

The General went on to say that, “during my time in Iraq there was not one instance of actionable intelligence that came out of these interrogation techniques.”

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GOP Strategists to Cheney: Enough, Already

Some are concerned Cheney will be seen as the spokesman for the party

Enough, already. That’s the reaction of many Republicans to Dick Cheney’s surge of media appearances to defend the Bush administration, especially on national security issues. “I don’t think anybody would call him and say, ‘Shut up.’ It wouldn’t work,” says a GOP strategist who formerly advised Ronald Reagan. “He obviously feels that his work as vice president is under attack. But he is not our best spokesman.” The concern among Republican strategists is that the public will think Cheney is speaking for the GOP, and this won’t be helpful because the former vice president remains an unpopular figure across the country. Another prominent GOP strategist says Cheney should lower his visibility and give younger party leaders a chance to take the spotlight.

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Specter’s defection to Democrats roils Republicans

WASHINGTON – Pennsylvania Sen. Arlen Specter is a Democrat again following a decades-long turn among Republicans, a defection that has the GOP warning about the perils of unchecked power only a few years after it controlled both the White House and Congress.

“The threat to the country presented … by this defection really relates to the issue of whether or not in the United States or America our people want the majority party to have whatever it wants without restraint, without a check or balance,” Senate Republican leader Mitch McConnell of Kentucky said Tuesday after Specter made his startling switch.

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D.C. to Wall Street: Drop Dead

Investors’ anger at Obama is misplaced. Stock indexes don’t ‘think.’ They don’t like one president and dislike the next.

Investment professionals and econo-pundits claiming to speak for Wall Street have been blaming President Obama for the recent run of losses in the stock market. To their minds, investors around the world are giving a daily thumbs up or thumbs down to the administration’s manifold policy initiatives. OBAMA’S RADICALISM IS KILLING THE DOW, read the headline of a Wall Street Journal op-ed by Stanford economist Michael Boskin, an official of the first Bush administration.

On March 3, Strategas analyst Dan Clifton noted that “with the S&P 500 off close to 8.5 percent since the budget was introduced, it is clear that equity investors remain skeptical of the government’s plan to lead us out of this financial crisis.” Even CNBC’s James Cramer, who supported Obama during the campaign, has turned on the president, calling him a “wealth .”

Talk about misplaced anger. Wall Street built a wooden house, stuffed it with flammable material, set it on fire and then poured gasoline on the blaze. And now it’s blaming the inferno on the arson inspector, who wasn’t appointed until after the fire had reached three-alarm status?

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Secret Bush Memo Authorizing Warrantless Seizure Of ‘Terror Suspects’ Released

The Obama administration threw open the curtain on years of Bush-era secrets Monday, revealing anti-terror memos that claimed exceptional search-and-seizure powers and divulging that the CIA destroyed nearly 100 videotapes of interrogations and other treatment of terror suspects.

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GOP Fighting For Money From Stimulus They Opposed

House Republicans, as a group, may take great pride in the goose egg they offered President Obama’s stimulus package. But now the unanimous opposition is struggling to bring that money home.

Republicans will be working hard to make sure the money they opposed ends up benefiting their home districts, highlighting the political tightrope they walk in this economic crisis. The Democratic Congressional Campaign Committee is watching House Republicans — and reading local media — closely and is only too happy to highlight any happy talk about a stimulus Republicans voted against.

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Dems Fed Up With McCain: “Angry Old Defeated Candidate”

“He is bitter and really angry,” Bob Shrum said of McCain in an interview on Friday. “He is angry at the press, which he thinks is unfair. He is angry at Obama and angry at the voters. He has gone from being an angry old candidate to being an angry old defeated candidate.”

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Dick Cheney outraged President Bush didn’t grant ‘Scooter’ Libby full pardon

In the waning days of the Bush administration, Vice President Dick Cheney launched a last-ditch campaign to persuade his boss to pardon Lewis (Scooter) Libby – and was furious when President George W. Bush wouldn’t budge.

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