Because I don’t have -- and have no prayer of ever having -- a Nobel Memorial Prize in economics, this statement is tantamount to blasphemy: Paul Krugman, the Nobel-winning economist and New York Times columnist, is wrong. At least when it comes to denigrating David Stockman’s cogent argument that the U.S. Federal Reserve is fomenting economic trouble.
David Stockman first came to prominence as Ronald Reagan’s publicity-prone director of the Office of Management and Budget in the early 1980s. In the decades since he was fired from that job, his career in the leveraged-buyout business has been of no great distinction except that it included an indictment for fraud. (The charges were dropped and he paid $7.2 million to settle a civil case brought by the Securities and Exchange Commission.) Now here we are discussing his new book on the corruption of American capitalism, “The Great Deformation.”
David Stockman’s warning that the Federal Reserve’s quantitative easing is steering the world’s largest economy toward a crash is at odds with nine quarters of job growth, record stock prices and unprecedented corporate earnings, former fiscal and monetary policy makers said.
David Stockman, the former Reagan administration budget director, was sued by the forensic accounting firm Navigant Consulting Inc. over claims he failed to pay $297,000 for work done for his defense in a fraud case.