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The Economic Crisis Taints Us All: Galbraith

Economist calls the meltdown a 'blot' on the profession

By Wesley Oliver,  Newser Staff

Posted Nov 2, 2008 3:19 PM CST
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(Newser) – The economic bust has taken a hammer to the profession of economics, Reagan's monetary policy, and the careers of President Bush, Alan Greenspan, and Henry Paulson, James Galbraith tells the New York Times. In an interview with Deborah Solomon, the economist chides his colleagues for failing to call the meltdown, which he says is “an enormous blot on the reputation of the profession."

Reagan’s policy of deregulation “has been shown to be fundamentally useless,” Galbraith says, adding that Bush’s cronyism “enabled all the shady operators and card sharks in the system to come to dominate how we finance.” But his harshest words are for the Fed chief, whose mea culpa came "a day late and a dollar short. I think Greenspan bears a high, high degree of responsibility for what has happened."

Former Federal Reserve Chairman Alan Greenspan bears a high, high degree of responsibility for the current economic crisis, James Galbraith says.
Former Federal Reserve Chairman Alan Greenspan "bears a high, high degree of responsibility" for the current economic crisis, James Galbraith says.   (AP Photo/Evan Vucci)
Treasury Secretary Henry Paulson is clearly not a superman, James Galbraith says. This is the guy who had the financial crisis on his plate for a year.
Treasury Secretary Henry Paulson "is clearly not a superman," James Galbraith says. "This is the guy who had the financial crisis on his plate for a year."   (AP Photo/Gerald Herbert)
Of 15,000 professional economists, James K. Galbraith says about 10 or 12 predicted a crisis looming ahead.
Of 15,000 professional economists, James K. Galbraith says about 10 or 12 predicted a crisis looming ahead.   (Shutter Stock)
There are thousands of economists. Most of them teach. And most of them teach a theoretical framework that has been shown to be fundamentally useless, James Galbraith says.
"There are thousands of economists. Most of them teach. And most of them teach a theoretical framework that has been shown to be fundamentally useless," James Galbraith says.   (Shutter Stock)
President Bush simply turned over regulatory authority to his friends, James Galbraith says.
President Bush "simply turned over regulatory authority to his friends," James Galbraith says.   (AP Photo/Jacquelyn Martin)
Vice President Dick Cheney will spend much of his life fending off legal challenges, James Galbraith says. I'm quite sure that the human rights issues will follow him for the rest of his life.
Vice President Dick Cheney "will spend much of his life fending off legal challenges," James Galbraith says. "I'm quite sure that the human rights issues will follow him for the rest of his life."   (AP Photo/Sergei Chuzavkov, Pool)
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Review of Galbraith's recent book
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Dick Cheney • economics • Henry Paulson • Alan Greenspan • Ronald Reagan • economist • regulation • George W. Bush • James K Galbraith

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