The latest cover of Newsweek completes the transformation of economist Paul Krugman to econo-celebrity. He gets the cover treatment, of course, but the inside article makes it plain how Krugman’s left-ish skepticism about Obama’s stimulus, Geithner’s toxic plan, etc., are the broadsides to watch.
These men and women have "no venality," Krugman hastened to say in an interview with NEWSWEEK. But they are suffering from "osmosis," from simply spending too much time around investment bankers and the like. In his Times column the day Geithner announced the details of the administration's bank-rescue plan, Krugman described his "despair" that Obama "has apparently settled on a financial plan that, in essence, assumes that banks are fundamentally sound and that bankers know what they're doing. It's as if the president were determined to confirm the growing perception that he and his economic team are out of touch, that their economic vision is clouded by excessively close ties to Wall Street.
More here. And note that Krugman came up repeatedly in the ABC This Week interview with Tim Geithner Sunday as well.