I'm not sure if New York Times columnist Paul Krugman will be able to save America from itself (and Timothy Geithner). But I am glad he is trying:
Financial Policy Despair
Published: March 22, 2009
Krugman: 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.America the Tarnished
Published: March 29, 2009
Krugman: Far more important is the extent to which our claims of financial soundness ? claims often invoked as we lectured other countries on the need to change their ways ? have proved hollow.On the reported loss of perhaps tens of billions of dollars from the government-controlled Pension Benefit Guaranty Corporation (the outfit that guarantees private-sector defined-benefit pension plans) due to extremely ill-timed investment decisions, Krugman just blogged about the underlying causes of such recklessness. It is likely
Indeed, these days America is looking like the Bernie Madoff of economies: for many years it was held in respect, even awe, but it turns out to have been a fraud all along.
the reason [for the bad decisions] was that the Bush administration, like many conservatives, was under the spell of the following pseudo-syllogism:Will the Obama Administration crack under the strain of its herculean attempts to maintain the fantasies Krugman correctly decries with every breath these days? Or will they read Krugman seriously and come to their sense. Only time will tell.
- The stock market captures the essential spirit of capitalism.
- Capitalism roolz!
- Therefore, stocks will go up.
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