1. Chait writes: “First, I have no idea why Spruiell says I believe that banks reap windfall profits when their borrowing costs decline. I suppose it’s possible I once wrote that — Spruiell provides no quote or link to suggest I did –” Yes, I did. The link, which I provided, is here.
2. Once again Chait argues that if one opposes the nationalization of a subsidized activity, then one is a defender of corporate welfare, even if one also opposes the subsidy. We’ve been over this. It’s a dumb argument and a cheap shot. According to Chait’s logic I betrayed my fiscal-conservative roots when I opposed the health-care bill, because as we all know, “it reduced the deficit.”
When, a few decades hence, conservatives are opposing the transition to single-payer and liberals like Chait are slamming them for defending an ugly corporate-welfare system that inefficiently subsidizes private insurance companies (i.e. Obamacare), please remember we had this conversation.