The Pasty Little Putz and Krugman

The Pasty Little Putz says it’s “A Time for Contrition,” and that there has been some accountability for priests who sexually abused children, but not nearly enough for the bishops who enabled them.  Prof. Krugman, in “Punks and Plutocrats,” says opponents of financial reform may say they’re against bank bailouts, but what they are really trying to block is bank regulation.  Here’s The Putz:

During a frustrating argument with a Roman Catholic cardinal, Napoleon Bonaparte supposedly burst out: “Your eminence, are you not aware that I have the power to destroy the Catholic Church?” The cardinal, the anecdote goes, responded ruefully: “Your majesty, we, the Catholic clergy, have done our best to destroy the church for the last 1,800 years. We have not succeeded, and neither will you.”

Two centuries later, the clergy has taken another shot at it. What the American and Irish churches have endured in the last decade and what German Catholics find themselves enduring today is all part of the same grim story: the exposure, years after the fact, of an appalling period in which the Catholic hierarchy responded to an explosion of priestly sex abuse with cover-ups, evasions and criminal negligence.

Now the scandal has touched the pope himself. There are two charges against Benedict XVI: first, that he allowed a pedophile priest to return to ministry while archbishop of Munich in 1980; and second, that as head of the Vatican’s Congregation for the Doctrine of the Faith in the 1990s, he failed to defrock a Wisconsin priest who had abused deaf children 30 years before.

The second charge seems unfair. The case was finally forwarded to the Vatican by the archbishop of Milwaukee, Rembert Weakland, more than 20 years after the last allegation of abuse. With the approval of then-Cardinal Ratzinger’s deputy, the statue of limitations was waived and a canonical trial ordered. It was only suspended because the priest was terminally ill; indeed, pretrial proceedings were halted just before he died.

But the first charge is more serious. The Vatican insists that the crucial decision was made without the future pope’s knowledge, but the paper trail suggests that he could have been in the loop. At best, then-Archbishop Ratzinger was negligent. At worst, he enabled further abuse.

For those of us who admire the pope, either possibility is distressing, but neither should come as a great surprise. The lesson of the American experience, now exhaustively documented, is that almost everyone was complicit in the scandal. From diocese to diocese, the same cover-ups and gross errors of judgment repeated themselves regardless of who found themselves in charge. Neither theology nor geography mattered: the worst offenders were Cardinal Bernard Law of Boston and Cardinal Roger Mahony of Los Angeles — a conservative and a liberal, on opposite ends of the country.

This hasn’t prevented both sides in the Catholic culture war from claiming that the scandal vindicates their respective vision of the church. Liberal Catholics, echoed by the secular press, insist that the whole problem can be traced to clerical celibacy. Conservatives blame the moral relativism that swept the church in the upheavals of the 1970s, when the worst abuses and cover-ups took place.

In reality, the scandal implicates left and right alike. The permissive sexual culture that prevailed everywhere, seminaries included, during the silly season of the ’70s deserves a share of the blame, as does that era’s overemphasis on therapy. (Again and again, bishops relied on psychiatrists rather than common sense in deciding how to handle abusive clerics.) But it was the church’s conservative instincts — the insistence on institutional loyalty, obedience and the absolute authority of clerics — that allowed the abuse to spread unpunished.

What’s more, it was a conservative hierarchy’s bunker mentality that prevented the Vatican from reckoning with the scandal. In a characteristic moment in 2002, a prominent cardinal told a Spanish audience that “I am personally convinced that the constant presence in the press of the sins of Catholic priests, especially in the United States, is a planned campaign … to discredit the church.”

That cardinal was Joseph Ratzinger, now Benedict XVI. Since then, he’s come to grips with the crisis in ways that his predecessor did not: after years of drift and denial under John Paul II, the Vatican has taken vigorous steps to promote zero tolerance, expedite the dismissal of abusive priests and organize investigations that should have happened long ago. Because of Benedict’s recent efforts, and the efforts of clerics and laypeople dating back to the first wave of revelations in the 1980s, Catholics can reasonably hope that the crisis of abuse is a thing of the past.

But the crisis of authority endures. There has been some accountability for the abusers, but not nearly enough for the bishops who enabled them. And now the shadow of past sins threatens to engulf this papacy.

Popes do not resign. But a pope can clean house. And a pope can show contrition, on his own behalf and on behalf of an entire generation of bishops, for what was done and left undone in one of Catholicism’s darkest eras.

This is Holy Week, when the first pope, Peter, broke faith with Christ and wept for shame. There is no better time for repentance.

Here’s Prof. Krugman:

Health reform is the law of the land. Next up: financial reform. But will it happen? The White House is optimistic, because it believes that Republicans won’t want to be cast as allies of Wall Street. I’m not so sure. The key question is how many senators believe that they can get away with claiming that war is peace, slavery is freedom, and regulating big banks is doing those big banks a favor.

Some background: we used to have a workable system for avoiding financial crises, resting on a combination of government guarantees and regulation. On one side, bank deposits were insured, preventing a recurrence of the immense bank runs that were a central cause of the Great Depression. On the other side, banks were tightly regulated, so that they didn’t take advantage of government guarantees by running excessive risks.

From 1980 or so onward, however, that system gradually broke down, partly because of bank deregulation, but mainly because of the rise of “shadow banking”: institutions and practices — like financing long-term investments with overnight borrowing — that recreated the risks of old-fashioned banking but weren’t covered either by guarantees or by regulation. The result, by 2007, was a financial system as vulnerable to severe crisis as the system of 1930. And the crisis came.

Now what? We have already, in effect, recreated New Deal-type guarantees: as the financial system plunged into crisis, the government stepped in to rescue troubled financial companies, so as to avoid a complete collapse. And you should bear in mind that the biggest bailouts took place under a conservative Republican administration, which claimed to believe deeply in free markets. There’s every reason to believe that this will be the rule from now on: when push comes to shove, no matter who is in power, the financial sector will be bailed out. In effect, debts of shadow banks, like deposits at conventional banks, now have a government guarantee.

The only question now is whether the financial industry will pay a price for this privilege, whether Wall Street will be obliged to behave responsibly in return for government backing. And who could be against that?

Well, how about John Boehner, the House minority leader? Recently Mr. Boehner gave a talk to bankers in which he encouraged them to balk efforts by Congress to impose stricter regulation. “Don’t let those little punk staffers take advantage of you, and stand up for yourselves,” he urged — where by “taking advantage” he meant imposing some conditions on the industry in return for government backing.

Barney Frank, the chairman of the House Financial Services Committee, promptly had “Little Punk Staffer” buttons made up and distributed to Congressional aides.

But Mr. Boehner isn’t the problem: Mr. Frank has already shepherded fairly strong financial reform through the House. Instead, the question is what will happen in the Senate.

In the Senate, the legislation on the table was crafted by Senator Chris Dodd of Connecticut. It’s significantly weaker than the Frank bill, and needs to be made stronger, a topic I’ll discuss in future columns. But no bill will become law if Senate Republicans stand in the way of reform.

But won’t opponents of reform fear being cast as allies of the bad guys (which they are)? Maybe not. Back in January, Frank Luntz, the G.O.P. strategist, circulated a memo on how to oppose financial reform. His key idea was that Republicans should claim that up is down — that reform legislation is a “big bank bailout bill,” rather than a set of restrictions on the banks.

Sure enough, a few days ago Senator Richard Shelby of Alabama, in a letter attacking the Dodd bill, claimed that an essential part of reform — tougher oversight of large, systemically important financial companies — is actually a bailout, because “The market will view these firms as being ‘too big to fail’ and implicitly backed by the government.” Um, senator, the market already views those firms as having implicit government backing, because they do: whatever people like Mr. Shelby may say now, in any future crisis those firms will be rescued, whichever party is in power.

The only question is whether we’re going to regulate bankers so that they don’t abuse the privilege of government backing. And it’s that regulation — not future bailouts — that reform opponents are trying to block.

So it’s the punks versus the plutocrats — those who want to rein in runaway banks, and bankers who want the freedom to put the economy at risk, freedom enhanced by the knowledge that taxpayers will bail them out in a crisis. Whatever they say, the fact is that people like Mr. Shelby are on the side of the plutocrats; the American people should be on the side of the punks, who are trying to protect their interests.

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