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Please Paul, Just Go Away, Take A Vacation Or Just Stop The Whining
"The buck stops with Obama. He makes the decisions. In a way, I think
I've got as much input as anyone can reasonably hope to have," Krugman
said. "I'm rooting for him. I hope I'm wrong in being pessimistic about
this plan."
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Is your point that you disagree with him or do you just suggest that he not speak his position? One could argue that he's doing more harm than good at this point.
March 25, 2009 11:54 AM | Reply | Permalink
Heis a Cassandra who sells a column. That's my problem with him.
March 25, 2009 12:24 PM | Reply | Permalink
"I hope I'm wrong in being pessimistic about thie plan" - Is he covering his butt just in case Geithner's plan works?
I thought he believed the plan was totally flawed on every aspect. Now he's saying he was just being pessimistic.
March 25, 2009 11:57 AM | Reply | Permalink
Watch them all start to crack. Today Roubini said the plan wasn't half bad. Stiglitz was completely over the top yesterddya and is stil an ass. Even in Krugman's interview he talks about banks wanting 50-60% on the dollar whereas the "market", if there is any, will only pay 20-30%.
Most housing over the last few years was never more than 100% over appraised. Even though that sounds like a lot, if the underlying security is worth 50 cents on the dollar, the CDO is probably worth that too. And if the mortgages underlying the CDOs aren't 100% in default there is significant upside from there also.
When there is no market, everything is worth zero. If the market just stops cratering, stuff that was so-called "toxic" can easily double in value from a 40 cents on the dollar handle.
March 25, 2009 12:23 PM | Reply | Permalink
Just checked Roubini's piece (or the most recent one I could find) out and in what I read, he is really only talking about the proposal for more powers over failing companies like AIG from yesterday.
http://www.rgemonitor.com/roubini-monitor/256158/it_is_time_for_a_special_insolvency_regime_for_systemically_important_financial_institutions_non-bank_financial_firms_and_bank_holding_companies
Do you have any links where he tempers his stand (from February/March) when he said quite clearly it's too late to save the banks and government takeover is the only way to go? If you do, I'd be very interested in reading them.
March 25, 2009 4:32 PM | Reply | Permalink
Found a link to the article you cite. If anyone else is interested -- http://dealbook.blogs.nytimes.com/2009/03/24/dr-doom-finds-promise-in-obamas-toxic-asset-plan/
March 25, 2009 6:08 PM | Reply | Permalink
Also possible that he realized the atmosphere he's been helping to create is simply not healthy and he's now doing what he thinks is the responsible thing.
Besides that, I hadn't known Roubini wasn't condemnatory. I'm glad to hear that.
March 25, 2009 4:11 PM | Reply | Permalink
We've reached critical mass, and all the while before it deteriorated to this level, brilliant minds were ignored.
In an effort to put a good face on the challenges ahead you might see some attempt to bring cheer.
It might not turn out so bad (MIGHT, ( NOT))
Much like the days when I was a child and we had fallout shelters.
So to give the appearance that all hope would not be lost,
We were told to get on the floor, and put our heads between our legs.... you know the rest of the story.
March 25, 2009 5:40 PM | Reply | Permalink