Now they have once again confused talk radio with reality. If this economy slides, they will go down in history as the Smoot-Hawleys of the 21st century. With this vote, they’ve taken responsibility for this economy, and they will be held accountable. The short-term blows will fall on John McCain, the long-term stress on the existence of the G.O.P. as we know it.This has been my point again and again... Free-markets are not panaceas. They need rules and regulations. Without them you end up in endless cycles where the rich and powerful -- the well-connected -- use the system to line their pockets at the expense of everyone else... That is system the nature of free-market competition: if you can leave someone else holding the bag, why not?
I’ve spoken with several House Republicans over the past few days and most admirably believe in free-market principles. What’s sad is that they still think it’s 1984. They still think the biggest threat comes from socialism and Walter Mondale liberalism. They seem not to have noticed how global capital flows have transformed our political economy.
We’re living in an age when a vast excess of capital sloshes around the world fueling cycles of bubble and bust. When the capital floods into a sector or economy, it washes away sober business practices, and habits of discipline and self-denial. Then the money managers panic and it sloshes out, punishing the just and unjust alike.
The dogmatism in the GOP created this mess -- and will (hopefully) be the end of that party as we know it...