Despair over financial policy

[Buzz]

For those who think that every liberal worships the Obama Administraion, check this out.

The Geithner plan has now been leaked in detail. It’s exactly the plan that was widely analyzed — and found wanting — a couple of weeks ago. The zombie ideas have won.

The Obama administration is now completely wedded to the idea that there’s nothing fundamentally wrong with the financial system — that what we’re facing is the equivalent of a run on an essentially sound bank. As Tim Duy put it, there are no bad assets, only misunderstood assets. And if we get investors to understand that toxic waste is really, truly worth much more than anyone is willing to pay for it, all our problems will be solved.

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This plan will produce big gains for banks that didn’t actually need any help; it will, however, do little to reassure the public about banks that are seriously undercapitalized. And I fear that when the plan fails, as it almost surely will, the administration will have shot its bolt: it won’t be able to come back to Congress for a plan that might actually work.

See the whole blog entry here:

http://krugman.blogs.nytimes.com/200...ancial-policy/

[ducknwork]

The Obama administration is now completely wedded to the idea that there?s nothing fundamentally wrong with the financial system ? that what we?re facing is the equivalent of a run on an essentially sound bank.

I distinctly remember a tv/radio ad in which the Obama campaign was slinging mud at McCain for a quote that was eerily similar to this one...

I guess now he suddenly agrees with McCain?
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Reflex sympathetic dystrophy advice

[cotts135]

Geithner and Summers both need to go. It seems that every decision that these guy makes is for the benefit of the boys of Wall St and particularly Goldman Sachs. It is the old boy network with winks and nods to there buds that whatever happens we will be sure to take care of you. Time for Obama to jettison these guys and find some new blood.

[dnf777]

Geithner and Summers both need to go. It seems that every decision that these guy makes is for the benefit of the boys of Wall St and particularly Goldman Sachs. It is the old boy network with winks and nods to there buds that whatever happens we will be sure to take care of you. Time for Obama to jettison these guys and find some new blood.

I don't know enough to agree or disagree with you on that. My gut feeling is, you're right. However, friends in that business (who are rabid republican tea-baggers) assured me that America was VERY close to a financial collapse. I thought it was odd to see them happy when the market bottomed around 7000....they said if that's all we suffer, we should thank our lucky stars! Many investors had their fingers on the trigger to pull out of American markets and trade cash assets for else, and it was this team along with some Bush leftovers that narrowly guided us back onto the somewhat stable ground we're on now.

I think we'll have to wait and read the history books on this one.

[luvalab]

I don't know enough to agree or disagree with you on that. My gut feeling is, you're right. However, friends in that business (who are rabid republican tea-baggers) assured me that America was VERY close to a financial collapse. I thought it was odd to see them happy when the market bottomed around 7000....they said if that's all we suffer, we should thank our lucky stars! Many investors had their fingers on the trigger to pull out of American markets and trade cash assets for else, and it was this team along with some Bush leftovers that narrowly guided us back onto the somewhat stable ground we're on now.

I think we'll have to wait and read the history books on this one.

Stable for whom???? Goldman-Sachs????


I'm with Cotts.

[TXduckdog]

I don't know enough to agree or disagree with you on that. My gut feeling is, you're right. However, friends in that business (who are rabid republican tea-baggers) assured me that America was VERY close to a financial collapse. I thought it was odd to see them happy when the market bottomed around 7000....they said if that's all we suffer, we should thank our lucky stars! Many investors had their fingers on the trigger to pull out of American markets and trade cash assets for else, and it was this team along with some Bush leftovers that narrowly guided us back onto the somewhat stable ground we're on now.

I think we'll have to wait and read the history books on this one.

Nay, Nay, Nay.......watch that Frontline episode..."THe Warning"......Geitner and Summers were both underlings of Rubin back when Rubin was in bed with Greenspan.....both of them were very PRO MARKET.....the market will regulate itself.....it proved to be BS and Greenspan admitted he was dead wrong in front of Congress.

Geitner and Summers are the same thing.....very pro market and pro Wall Street....OF COURSE THERE IS NOTHING WRONG...THE MARKET WILL POLICE ITSELF.

Go to PBS and watch that segment.....it will open your eyes.

[dnf777]

Stable for whom???? Goldman-Sachs????


I'm with Cotts.

Not arguing with ya....just saying a couple of dollars still buys a loaf of bread....apparently we were much closer to full-out collapse than what many realized, and that may NOT have been the case.