Simon Johnson on Elizabeth Warren:
Don’t play the Republicans’ game by agreeing to debate “big” vs. “small” government. This is a complete illusion – just watch the favors that businesses will seek from Republicans on the Hill; not all of these appear “on the government’s balance sheet”, to be sure, but you can talk to the anguished people of Ireland about how exactly supposedly ”pro-business” (and definitely pro-big bank) policies end up costing the taxpayer a lot of money. (Or just look at how the financial disaster of 2008-09 ended up costing us 40 percentage points of GDP, measured in terms of the increase in our national debt – directly because of how the financial sector ran its customers and itself into the ground.)
The political debate should begin with documenting business practices that are misleading and duplicitous, wherever they occur.
We need transparency and accountability in the financial sector – and in all other parts of our economy. Elizabeth Warren is exactly the right person to lead this charge, in the first instance from the CFPB.
She should be nominated by President Obama to head the agency. The fight for her confirmation would make her ideas clear to millions. Let’s see which senators exactly are willing to argue against greater transparency.
Maxine here: I have no confidence that the Obama administration will effectively leverage Warren's obvious good sense and broad appeal to advance a pro-middle class, pro-Main Street agenda that is entirely consistent with strengthening markets, making them more competitive and boosting consumer sovereignty and confidence. If the past is any indicator of the future, BHO is already trying to figure out what shill the R's will regard as acceptable to head the CFPB.
I do not think "bipartisan" means what Obama thinks it means.
Please read Johnson's full post, it is really excellent.
Hat tip rjs