A note from Stan
If you have not done so, I urge you to read Paul Krugman’s column for today (September 22). It is quite possible that Henty Paulson’s plan to save Wall Street (and, thus, our national finances) is not as wise as Mr. Paulson has let on.
Two signs that Paulson’s plan may not be as good as he says: This is the fourth or fifth time that Mr. Paulson has assured us that the problem will be contained by whatever action he was or is currently proposing. As Mr. Krugman says, Mr. Paulson is making it up as he goes along. No one has ever faced this set of problems before.
The second bad sign is the demand for haste. Congress is a deliberative body, and we must recall the last time this administration put the rush on a demand for congressional action, the one that led to our premature engagement in Iraq, a decision that most in the nation and most in congress now regret. Were I in Congress today, I would demand the opportunity to deliberate before I acted.
2 responses so far ↓
1 Jack king // Sep 22, 2008 at 10:13 am
Again, I have to disagree with Krugman. What is the difference between the govt. bailing out the banks at taxpayer expense and the govt. taking over the banks and assuming responsibility for their debt? Either way, the taxpayer gets stuck with the bill.
The difference is that in the second scenario the banking industry becomes nationalized. Governments of other countries have nationalized their banks in the past with disastrous results. Politicians are even worse than bankers at managing money.
The longer we wait for a solution, the more stocks and bonds will decline in value and the more pension funds will decline in value, and the more unemployment will rise.
The only silver lining in this mess is that the dollar will strengthen as more bad debt is written off and prices of foreign goods, including oil, will continue to decline.
American goods and services, however, will be hard to sell in the global market, because the dollars required to buy them will be hard to come by.
We’ve already nationalized Fannie, Freddie, and AIG (the largest insurance company in the world), and I think that’s more than enough.
2 GeneNovo // Sep 22, 2008 at 7:56 pm
…and dare anyone question the assumption that capitalism is the BEST way? Idealistic to be sure, a NEW way of economic thinking/acting is needed, one that is sustainable for humans and the planet, and one that provides certain basics in return for societal contributions ….. “You’re a dreamer, and I’m one, too ….” I want dreamers, not bottom-liners ….
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