Senator Obama did a call this morning with some of his key economic advisors including Paul Volcker, Bob Rubin, Lawrence Summers and Laura Tyson about the state of the financial markets. They discussed what to expect from financial markets today and over the course of this week, how these events would impact the overall economy, and what steps should be taken to address the problems in our financial markets and economy more broadly.
If I were looking to crack wise, I might call this “more of the same.” Bob Rubin, after all, was one of the key players in overseeing the deregulation of the financial sector, most notably the revocation of Glass-Steagall. That deregulation may not have caused the current crisis, but it sure as hell didn’t help: it contributed to creation of what Krugman calls in his column today the “shadow banking system.” So why would Barack Obama call in Bob Rubin? Mostly, I think because Rubin is kind of a brand name in finance, and talking to him is a symbol that you’re talking to smart people. Rubin’s unquestionably smart, but for a campaign running on change, I don’t think he’s the first guy I’d go to.
UPDATE: John Judis has more