Stockman Rips Into Ryan-Romney Budget, Calls for Glass-Steagall
August 15, 2012 • 10:35AM

Writing in Tuesday's New York Times, David Stockman, head of the Office of Management and Budget during the Reagan era (1981-1985), launched a scathing attack on the Ryan-Romney "fairy-tale" budget plan.

Stockman argued that "there can be no hope of a return to vibrant capitalism unless there is a sweeping housecleaning at the Federal Reserve and a thorough renunciation of its interest-rate fixing, bond buying and recurring bailouts of Wall Street speculators... The giant Wall Street banks remain dangerous quasi-wards of the state and are inexorably prone to speculative abuse of taxpayer-insured deposits and the Feds cheap money. Forget about too big to fail. These banks are too big to exist—too big to manage internally and to regulate externally. They need to be broken up by regulatory decree. Instead, the Romney-Ryan ticket attacks the pointless Dodd-Frank regulatory overhaul, when what's needed is a restoration of Glass-Steagall, the Depression-era legislation that separated commercial and investment banking."

Reflecting the deep rifts that exist within the Republican Party, as they do among Democrats, Stockman also excoriated "the neoconconservative imperialism that the G.O.P. cobbled from policy salons run by Irving Kristol's ex-Trotskyites three decades ago."