Tuesday, August 14, 2012

David Stockman says so: Paul Ryan’s Fairy-Tale Budget Plan

Mr. Stockman was right -- and more courageous than most -- when he told Ronald Reagan the truth and he's right now.  Ryan's playing in the fantasy economics league.

Paul Ryan’s Fairy-Tale Budget Plan - NYTimes.com

The greatest regulatory problem — far more urgent that the environmental marginalia Mitt Romney has fumed about — is that the giant Wall Street banks remain dangerous quasi-wards of the state and are inexorably prone to speculative abuse of taxpayer-insured deposits and the Fed’s cheap money. Forget about “too big to fail.” These banks are too big to exist — too big to manage internally and to regulate externally. They need to be broken up by regulatory decree. Instead, the Romney-Ryan ticket attacks the pointless Dodd-Frank regulatory overhaul, when what’s needed is a restoration of Glass-Steagall, the Depression-era legislation that separated commercial and investment banking.

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