Paul Krugman (AP/Heribert Proepper)

Paul Krugman: Any Republican in the White House dooms the U.S. to another financial crisis

Either Democratic candidate would, at least, appoint judges sympathetic to spirit of financial reform


Scott Eric Kaufman
April 11, 2016 3:26PM (UTC)

In his Monday New York Times column, economist Paul Krugman argued that at stake in next November's election is the future of financial reform, which has been thrown into jeopardy by what he considers a favorable ruling for MetLife in Federal District Court.

Judge Rosemary Collyer ruled that "regulators had failed to a cost-benefit analysis," which the law doesn't even require them to perform. "Financial crises," he wrote, "are drastic events; it’s unreasonable to expect regulators to game out in advance just how likely the next crisis is, or how it might play out, before imposing prudential standards."

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Judge Collyer is, in effect, demanding regulators "quantify the unquantifiable," which is precisely what financial firms want, because it opens "the floodgates to a wave of challenges to financial reform." As Krugman noted, however,

It doesn’t have to happen. As with so much else, this year’s election is crucial. A Democrat in the White House would enforce the spirit as well as the letter of reform — and would also appoint judges sympathetic to that endeavor. A Republican, any Republican, would make every effort to undermine reform, even if he didn’t manage an explicit repeal...

Read the rest at the New York Times...


Scott Eric Kaufman

Scott Eric Kaufman is an assistant editor at Salon. He taught at a university, but then thought better of it. Follow him at @scottekaufman or email him at skaufman@salon.com.

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Related Topics ------------------------------------------

2016 Gop Primary Elections 2016 Financial Reform Paul Krugman

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