Krugman is right. IMO Pres. Obama is wasting his mandate to protect insolvent banks

[LittleBlue]

So why has this zombie idea — it keeps being killed, but it keeps coming back — taken such a powerful grip? The answer, I fear, is that officials still aren’t willing to face the facts. They don’t want to face up to the dire state of major financial institutions because it’s very hard to rescue an essentially insolvent bank without, at least temporarily, taking it over. And temporary nationalization is still, apparently, considered unthinkable.

But this refusal to face the facts means, in practice, an absence of action. And I share the president’s fears: inaction could result in an economy that sputters along, not for months or years, but for a decade or more.

http://www.nytimes.com/2009/03/06/opinion/06krugman.html?_r=3

Krugman is absolutely right. The obvious solution is to nationalize the banks temporarily like the Swedish did. The White House environment seems practically Bushonian; apparently a small group (Geithner and Summers) have hijacked economic/banking policy away from logic (nationalization) to support the already failed model of capitalizing zombie banks (like Japan did almost 20 years ago).

While he does this, the economy suffers. Fear is widespread because nobody knows if the banks' balance sheets are accurate.


President Obama: It is time to be a leader. Dump Geithner and Summers, and institute the common sense model. The longer you "dither", the worse this is going to get. Ideology must be put aside for the common good. We will get Palin in 2012 if we can't fix the economy, and to fix the economy we need to fix the banks. /rant

[FrenchieCat]

1. It's the attack of the PUMAs!

Waiting a bit more, like 30 days, would make it look less obvious. :shrug:

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=132&topic_id=8248260&mesg_id=8248260

[LittleBlue]

2. Stop it. I'm not a PUMA, supporting Obama throughout the primaries

Look at my history if you don't believe me.

Stop the namecalling- it only makes your position look weak.

[FrenchieCat]

4. I'm talking about Krugman. Check his record of support.

I often wonder if he could have passed the stimulus bill, considering he is so good at telling other people what they need to do?

Oh yeah, we'll never know. :eyes:

[AllentownJake]

13. He's an economist not a politian

Keynse wasn't too fond of everything FDR did either. Who was right :shrug:

Krugman can live in a world of theory, Obama lives in a world of political reality. Doesn't mean I don't want to hear Krugman's educated theory.

[Captain Hilts]

18. Exactly. nt

[PurityOfEssence]

23. One man's "possible" is an other man's "politically suicidal"

Obama errs WAY too much on what will give him the broadest approval, and the joke is that it doesn't work with the reactionaries. He's cut from the same cloth as Bill Clinton on this particular delusion.

Who gives a fuck about "reasonable" when the appeasing "pragmatic" course is one directly to full-frontal disaster? Sherman said that war was too important to be entrusted to the politicians, and at this point, the economy is too.

[AllentownJake]

26. Tell that to the likes of Evan Bayh

Clinton started off full frontal liberal agenda...blue dogs betrayed him. Next thing you know the GOP targets the blue dogs tying them to Clinton even though they opposed him and we have a GOP congress.

Bayh is a fucking retard. He's to fucking dumb to realize that regardless of how he votes the GOP is going to tie him to Obama because he has a D next to his name. He sinks or swims with Barack.

[Better Believe It]

16. You mean the greatly weakened Republican written stimulus bill ?

100 billion will be spent for job creating infrastructure and other projects this year and about 100 billion next year.

Roubine calls it puny when at least 700 million in job creation stimulus is required.

The Republican written stimulus bill was written by the three Republicans to fail. That was their intention. Democrats played into their hands in the name of bi-partisanship. This was a road to hell bi-partisanship. The job creation is a piss in the ocean when one considers what bold measures are necessary to prevent a rapid slide into the Second Great Depression.

A strong job creation bill create nearly 2 million public works jobs costing about 200 billion dollars to be completed by the end of 2010 could have been passed with 51 votes. And such legislation needs to be proposed and passed now! The bold economic proposal of the nation's mayors has been ignored by the Democratic leadership in the Senate and House.

We need 51 votes in the Senate to get the job done.

We don't want the Democratic party to become known as the party of surrender and capitulation to the Republicans, do we?

[Captain Hilts]

17. He praised Prez Obama's budget and rated it high. He looks at issues, not personalities. nt

[polichick]

28. True - and Krugman is certainly right about this. Obama chose an...

...economic team that's far too close to the corrupt bankers. Nationalization would allow us to dump that crowd.

[Telly Savalas]

32. Why are Geithner's actions preferable to the strategy of temporary nationalization?

[placton]

3. My God You are so right

IMHO, the US government should outright OWN 1 of every business - from a newspaper to a dairy to the TVA - to provide a comparison for the bull we are fed by the people who PROFIT from that business. We are pissing trillions down a rat hole, to no good effect. There is something called "involuntary bankruptcy," and the USA (since we are PAYING FOR IT) should own the failures, re-tread them, and ship them back with lotsa MOMMY oversight.

[LittleBlue]

8. This is classic right-wing hyperbole

Temporarily nationalizing the banks and reselling them is not tantamount to "the government owning one of every business."

We need to dump Rush Limbaugh and his masturbatory sycophants; their ideology has proven an utter disaster. President Obama should not adopt it, yet he seems to have.

[invictus]

5. K&R

[Yavin4]

6. As Soon As Obama Nationalizes, The Talking Heads Will Explode With The "Socialist" Charge

Even some Dems in Congress will balk at nationalization. I too believe that it's the right course to take, but it's easy for me and Krugman to propose nationalization. We don't have to face a congress and a media who will go apeshit over the very word.

If you haven't noticed, we're not Sweden, which is sad because the women there are amazing.

[LittleBlue]

9. Precisely. Obama has to be a leader

It's really difficult to buck the trend and face criticism.

It has to be done for the people. They are unemployed and cannot afford to eat cake in order to humor failed ideologies, IMO.

[girl gone mad]

29. And the men are even more amazing.

[Telly Savalas]

33. When Obama wanted to boost funding for highways the d-bags' heads exploded

with the "Socialist" charge.

Polls indicate that a majority of Americans support nationalization. It's not as politically sensitive as some make it out to be. Certainly less politically sensitive than letting the financial crisis continue due to lack of appropriate action.

[Yavin4]

7. As Soon As Obama Nationalizes, The Talking Heads Will Explode With The "Socialist" Charge

Even some Dems in Congress will balk at nationalization. I too believe that it's the right course to take, but it's easy for me and Krugman to propose nationalization. We don't have to face a congress and a media who will go apeshit over the very word.

If you haven't noticed, we're not Sweden, which is sad because the women there are amazing.

[Better Believe It]

24. The only alternative to nationalization is total collapse of the banking system

another Great Depression and in 2012 the Republicans will surely regain control of the House, the Senate and White House.

So given that choice, what do you think President Obama should do?

This is not a time for timidity.

[davidwparker]

10. The next election, if jobs don't come back to this country, will be to throw

out ANYBODY who is in Congress now.

[LittleBlue]

11. That's my greatest fear. We will have Palin 2012 if we are too

afraid to stand up to RW ideologies and do the right thing.

This country is stupid enough to elect that fraud under certain circumstances, never doubt it.

[dpbrown]

12. Nationalize the banks, let them buy their way out when they're solvent again...

There's no time to waste. Get to it.

[Skink]

14. "Informed commentators"

:rofl:

[Metta]

15. Obama's listening to bad advice. Summers and Geithner are Wall St. lackeys. S is a rabid deregulat

deregulator.

[mzmolly]

19. With the new stim package 1 in 9 homeowners will directly

benefit. I am not opposed to Krugman's opinion on the banks however.

[Phx_Dem]

20. Hello? Krugman wants Obama to nationalize the banks.

The ultimate protection.

[HiFructosePronSyrup]

21. What the country needs now is a gas tax holiday.

:crazy:

[depakid]

22. Eventually, this is going to erode his support

Not many people have good things to say about Gaithner and Summers.

Former Australian PM (and economic guru) Paul Keating had some pretty choice words for these center right ideologues today:

Obama's economic saviour savaged as Keating lets rip

http://www.smh.com.au/opinion/obamas-economic-saviour-savaged-as-keating-lets-rip-20090306-8rk7.html?page=-1

[Grateful for Hope]

25. Besides the links, do you have an intelligent argument

that you can share with us?

[LittleBlue]

34. Sure, here's mine

Temporary nationalization
Attempted?: Yes
Successfully?: Yes, by Sweden.
Cost?: Minimal. Under $100 billion, the total market cap of the two major troubled banks (Citi and BoA)


Geithner's and Summers' zombie banks
Attempted?: Yes
Successfully?: No, the Japanese economy has never recovered from its banking/RE collapse
Cost?: So far, around $3 trillion between congressional bailouts and Fed hypercapitalizations/loans.



You tell me, which is more logical?

[polichick]

27. I agree with this guy:

http://www.npr.org/templates/story/story.php?storyId=101360253

He too believes we need to nationalize the major banks temporarily - well worth a listen.

[TeamJordan23]

30. I don't like Krugman but he is right, the banks have long been insolvent. nm

[GeorgeGist]

31. Obama's protecting capitalism ...

no matter what the consequences.