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Paul Krugman joined David Shuster on 1600 and tried to explain what's been happening in the economy, President Obama's reaction to it and the boneheaded Republican responses to it. I'm truly amazed that gasbags like John McCain, Richard Shelby and John Boehner are given any kind of platform to opine on about the economy when they don't even understand the fundamentals about the banking industry.

One of the major reasons McCain lost the election is that he had no clue when the economic crisis hit. The American people spoke and the Republicans were ousted. I'm not sure why the Obama administration is dithering around with the banks also, but at least they understand how the banking industry works.

Digby writes:

I'm being driven nearly mad by the new Republican line propagated by McCain and Shelby that we need to "let these banks fail" instead of nationalizing them. I'm an idiot when it comes to economics, but even I'm not that dumb. (And I didn't have nearly 50 million people vote for me for president either.)

On Shuster today, Krugman very calmly explained that if what they mean by "letting them fail" is that we put them into receivership, then they're right. After all that's what the FDIC is doing about twice a week now with banks all over the country. If it makes these bozos feel better to call it "letting them fail" rather than "nationalization" that's fine with me. Maybe that's a good way to phrase it. Unfortunately, it's pretty obvious that they don't understand it that way. They think these banks can go "bankrupt," just close the doors and stop operating like the corner hardware store. Apparently they don't understand that the government has to take over banks that are deemed to have failed

The campaign showed that McCain is one of the dumbest members of congress on economics and it's clearer ever day that the world dodged a bullet with that one. It's bad enough that we are all feel like our minds are swimming in quicksand when it comes to understanding this banking crisis. To have these "leaders" out there saying completely stupid things in the face of it is simply breathtaking.

Shuster also asked about John Boehner's absurd suggestion that we should freeze government spending. Krugman showed great forbearance, explaining the "paradox of thrift" and mildly suggesting that these people seem to be ignoring the last 80 years of economic thinking. I think it's actually quite clear that these self-professed guardians of the free market and the capitalist system know less about economics than the average high school sophomore. And that is profoundly disturbing.

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You Tube [H/t Heather]

Oh, this one was fun to watch. Ari jumped onto the ice with a Hypocrisy Double Axel, immediately attacking the Obama administration and the "Democrat" party for... wait for it... being childish!

Yeah, Ari, because calling the Democratic Party the "Democrat Party" is so awesomely mature. (I know you are, but what am I?)

But that was just the beginning. Ari was spinning and leaping all over the place as he clutched his pearls, wondering over and over what happened to the "post-partisan" Obama? To hear him talk, he was puzzled and hurt by the vicious slash and burn tactics of the president and his party, and kept repeating how "childish" it all was.

Shuster wouldn't stand for his nonsense, though. He cited chapter and verse, including the time Ari attacked Move On and the entire Democratic party as "unpatriotic" over the General Petraeus ad.

Just go watch it. If this is the best media spokesperson the Republicans can throw at us, we're in good shape.

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[H/t Heather.]

Senator John Barrasso of Wyoming has learned the lesson well. It's the new Republican 12th Commandment: Do Not Criticize the Limbaugh National Committee.

Shuster kept asking him to speak out against Rush and he refused. The GOP should change its symbol from the elephant to the chicken.

House Minority Leader John Boehner (R-Ohio) recently delivered a major-league pep-talk to his Republican caucus, which was very well received. GOP lawmakers gave Boehner a standing ovation, and were all smiles as they looked ahead to the rest of the year. They were led to believe that tying Dems in congressional races to Obama and Pelosi would be a recipe for success, and Republicans might even gain seats this year.

This same Republican caucus was feeling far less jovial during their confab yesterday. Boehner’s election strategy has been tested twice now in two months in two reliably Republican districts — first in Illinois’ 14th, then in Louisiana’s 6th. The GOP went 0-for-2. Worse, the NRCC has very little money to make a serious go at actually narrowing the Dems’ majority. None of these guys left the room smiling yesterday.

What might cheer congressional Republicans up? How ’bout a trip to the White House?

House Republicans will hold a rally with President Bush on Wednesday morning, with all 199 members invited to 1600 Pennsylvania Ave. to show solidarity with the president, according to GOP sources.

Oddly enough, I’m not sure whose spirits this is supposed to boost — Republicans’ or Dems’.

As Tim F. noted, “Blind, deaf Americans living under rocks for very long periods of time have figured out that everything the President touches is a half-assed failure. Any sane person would treat the guy as radioactive. So what gives? I have to assume that this little pep rally will be about as well attended as Alberto ‘abu’ Gonzales’s farewell party at the DoJ.”