In a commentary on CNN, Carville urged the president to fire some of his staff, especially economic advisers, and to indict some of the financiers whose actions helped bring on the economic crash. Obama must also start making the case for Democrats and stick to positions he has taken.
"What should the White House do now? One word came to mind: panic," he said.
Carville, the architect of Clinton's 1992 campaign, cited mass firings by Clinton in 1994 after the Republicans won a majority in Congress and by President Ronald Reagan during his 1980 campaign. He said Obama needs to fire "a lot of people."
Generally, Carville called on Obama to be harder and clearer.
"There are certain people in American finance who haven't been held responsible for utterly ruining the economic fabric of our country," he said. "Demand from the attorney general a clear status of the state of investigation concerning these extraordinary injustices imposed upon the American people."
"As I watch the Republican debates, I realize that we are on the brink of a crazy person running our nation," he said.