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Market 'Fix' Just Feeds the Beast

Bush denies need for regulations, Krugman writes in NYT

By Jonas Oransky,  Newser Staff

Posted Mar 31, 2008 5:08 PM CDT

(Newser) – The Treasury plan unveiled today will never rein in free-wheeling markets because it isn't intended to, Paul Krugman writes in the New York Times. President Bush, who for 7 years has slashed at regulations, ignores how well they harness deposit-taking banks. And he denies that "non-depository" banks like Bear Stearns need them too.

The new plan can only "succeed in confusing the issue sufficiently to stand in the way of real reform," Krugman writes. “To reverse course now, and seek expanded regulation, the administration would have to back down on its free-market ideology, and it would also have to face up to the fact that it was wrong. And this administration never, ever, admits that it made a mistake.”

Treasury Secretary Henry Paulson
Treasury Secretary Henry Paulson   (AP Photo/J. Scott Applewhite)
President George W. Bush urges Congress to move on his legislative agenda as he and first lady Laura Bush  prepare to depart the White House for Europe, Monday, March 31, 2008.
President George W. Bush urges Congress to move on his legislative agenda as he and first lady Laura Bush prepare to depart the White House for Europe, Monday, March 31, 2008.   (AP Photo/J. Scott Applewhite)
President Bush, flanked by Treasury Secretary Henry Paulson, left, and Federal Reserve Chairman Ben Bernanke.
President Bush, flanked by Treasury Secretary Henry Paulson, left, and Federal Reserve Chairman Ben Bernanke.   (AP Photo/Gerald Herbert, File)
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