By PAUL KRUGMAN
Published: March 22, 2009
Over the weekend The Times and other newspapers reported leaked details about the Obama administration’s bank rescue plan, which is to be officially released this week. If the reports are correct, Tim Geithner, the Treasury secretary, has persuaded President Obama to recycle Bush administration policy — specifically, the “cash for trash” plan proposed, then abandoned, six months ago by then-Treasury Secretary Henry Paulson.
This is more than disappointing. In fact, it fills me with a sense of despair.
Read on...
Peacenik was getting bummed out by some of the hockey results on the weekend. Habs lose to the lowly leafs. Canucks lose to the lowly Coyotes. And Peacenik isn't winning the March Madness pool. Then Peacenik read the reviews for Obama's "new" rescue of the banks and their toxic assets. Then Peacenik sees on the front page of this morning's Globe that Ottawa and Canadian banks are taking action on mortgages. But Ottawa just told Peacenik that there were no problems in Canada. That Canada was special.
The black hole of financial armagedden is staring Peacenik and the world in the face this cool Monday morning. Krugman thinks the world may be down to its last chance. Read Taibbi in the Rolling Stone, or this from Naked Capitalism. Wall St. and the banks don't deserve to be rescued. They deserve to be in jail. But Wall St. will probably rally a bit on Obama's rescue plan. Then reality will bite hard. The banks can't be rescued. The economy can't be saved. The black hole wins.
Published: March 22, 2009
Over the weekend The Times and other newspapers reported leaked details about the Obama administration’s bank rescue plan, which is to be officially released this week. If the reports are correct, Tim Geithner, the Treasury secretary, has persuaded President Obama to recycle Bush administration policy — specifically, the “cash for trash” plan proposed, then abandoned, six months ago by then-Treasury Secretary Henry Paulson.
This is more than disappointing. In fact, it fills me with a sense of despair.
Read on...
Peacenik was getting bummed out by some of the hockey results on the weekend. Habs lose to the lowly leafs. Canucks lose to the lowly Coyotes. And Peacenik isn't winning the March Madness pool. Then Peacenik read the reviews for Obama's "new" rescue of the banks and their toxic assets. Then Peacenik sees on the front page of this morning's Globe that Ottawa and Canadian banks are taking action on mortgages. But Ottawa just told Peacenik that there were no problems in Canada. That Canada was special.
The black hole of financial armagedden is staring Peacenik and the world in the face this cool Monday morning. Krugman thinks the world may be down to its last chance. Read Taibbi in the Rolling Stone, or this from Naked Capitalism. Wall St. and the banks don't deserve to be rescued. They deserve to be in jail. But Wall St. will probably rally a bit on Obama's rescue plan. Then reality will bite hard. The banks can't be rescued. The economy can't be saved. The black hole wins.
