Paul Krugman:Bailouts for Bunglers

[cal04]

http://www.nytimes.com/2009/02/02/opinion/02krugman.html?_r=1

Question: what happens if you lose vast amounts of other people’s money? Answer: you get a big gift from the federal government — but the president says some very harsh things about you before forking over the cash.

Am I being unfair? I hope so. But right now that’s what seems to be happening.

Just to be clear, I’m not talking about the Obama administration’s plan to support jobs and output with a large, temporary rise in federal spending, which is very much the right thing to do. I’m talking, instead, about the administration’s plans for a banking system rescue — plans that are shaping up as a classic exercise in “lemon socialism”: taxpayers bear the cost if things go wrong, but stockholders and executives get the benefits if things go right.

When I read recent remarks on financial policy by top Obama administration officials, I feel as if I’ve entered a time warp — as if it’s still 2005, Alan Greenspan is still the Maestro, and bankers are still heroes of capitalism.

“We have a financial system that is run by private shareholders, managed by private institutions, and we’d like to do our best to preserve that system,” says Timothy Geithner, the Treasury secretary — as he prepares to put taxpayers on the hook for that system’s immense losses.

[BlooInBloo]

1. That's a version of the standard criticism of the "too big to fail" concept, for sure...

And a pretty much fair criticism, at that - at least as it applies to a bailout-sans-strings-attached.

[DJ13]

2. and we’d like to do our best to preserve that system

......and help all those executives to keep their jobs.

[Oregone]

3. Everytime I read Krugman, I want to bang my head against a wall.

Im going to drink a beer and convince myself he is a filthy liar.

[notesdev]

4. Glad to see

that Krugman woke up on the 'no bailout' side of the bed this morning.

Tomorrow, on the other hand, he can do a complete about-face. Is all his waffling on the bailout just positioning himself to be seen as supporting the bailout if it works and opposing it if it doesn't?

[Tesha]

5. It's the standard capitalist action...

"Socialize costs; privatize profits".

Your Corporatist government at work!

Tesha

[Jakes Progress]

6. Krugman is proof

that telling truth to power won't get you invited inside.

[KoKo]

7. DAMNED STRAIGHT! And if we weren't so "Dead" from Bush Attrocities...we'd be IN THE STREETS!

It's ALL DISGUSTING...but the "Powers that Be" figure most of our "Outrage Meters" are on "000000" ...and so they don't bother. They are rewriting history books and the rest for Legislation on the fact that we've all been "Shock and Awe'd OUTTA OUR MINDS!"

:puke: Disgusting...and there's no other way to describe it than that Emoticom.

[mdmc]

8. kick