by Pam Martens and Russ Martens
Wall Street on Parade
Economist Paul Krugman has repeatedly attempted to recast the 2008 Wall Street collapse as triggered by shadow banks rather than the biggest banks on Wall Street. Krugman refuses to let the facts on the ground get in his way. (Later in this article, we’ll produce a document to show just how ridiculously off base Krugman really is.)
On December 14, 2014 Krugman wrote in his column at the New York Times: “In fact, I’d argue that regulating insured banks is something of a sideshow, since the 2008 crisis was brought on mainly by uninsured institutions like Lehman Brothers and A.I.G.” Apparently, Krugman, like his colleague Andrew Ross Sorkin, is ignorant of the fact that both Lehman Brothers and AIG owned FDIC-insured banks at the time of their failure, backstopped by the U.S. taxpayer. (When Wall Street On Parade asked the Public Editor, the Publisher, and the Editor of the New York Times to correct the gross misrepresentations made by Ross Sorkin on this issue in his 2012 article, it ignored each and every one of our requests. That suggested to us that this is an intentional false meme at the New York Times – otherwise known as propaganda.)