Columnist claims we're blaming the wrong person for the current economic crisis

Op-ed columnist Paul Krugman argues today in the New Tork Times that this person really isn't the one responsible for our current economic woes. Here is the real villain, he claims.

All our troubles, the columnist says, stem from that day 27 years ago when then President Reagan signed something called the Garn-St. Germain Depository Institutions Act. Krugman writes:

"Attacks on Reaganomics usually focus on rising inequality and fiscal irresponsibility. Indeed, Reagan ushered in an era in which a small minority grew vastly rich, while working families saw only meager gains. He also broke with longstanding rules of fiscal prudence.

"On the latter point: traditionally, the U.S. government ran significant budget deficits only in times of war or economic emergency. Federal debt as a percentage of G.D.P. fell steadily from the end of World War II until 1980. But indebtedness began rising under Reagan; it fell again in the Clinton years, but resumed its rise under the Bush administration, leaving us ill prepared for the emergency now upon us.

"The increase in public debt was, however, dwarfed by the rise in private debt, made possible by financial deregulation. The change in America’s financial rules was Reagan’s biggest legacy. And it’s the gift that keeps on taking."