Rationale for a nightmare

“This notion that the economy is self-stabilising is usually right but it is wrong a few times a century. And this is one of those times….” Lawrence Summers, Obama economic advisor in today’s Financial Times.

This is the wrong argument, one that supports unregulated markets most of the time. Rather, we’ve learned that the balance of market and regulatory power is something that cannot remain static over time, that constant retooling is needed. IF we want to think differently, it’s time to acknowledge that mixed markets are the healthiest and that, once this crisis is over, there is no “going back,” because the unregulated economy has demonstrated it is a ruinous economy.

Warren Buffett agrees: “We want to err on the side next time of not allowing big institutions to get as unchecked on leverage as we have allowed them to do.”

McCain’s bizarre VP choice

There are many things being said about Gov. Sarah Palin being on the Republican ticket, which smacks of a tokenism worthy of a South Park parody, but what strikes me most is that it thoroughly undercuts the Republican argument against Barack Obama: That he is too young and inexperienced. If Palin can be a heartbeat away from the presidency under a 72-year-old four-time cancer survivor, Obama is eminently qualified to be at the top of the Democratic ticket.

Republicans can just put away the “Obama’s experience is the issue” rhetoric now. And I’ll take Joe Biden as president over Sarah Palin on any day, even the quietest one of any presidency ever.

That his VP destroys his argument against Obama speaks volumes about McCain’s judgment and willingness to pander mindlessly to the far right.