Thursday, March 21, 2009
Krugman has added several items to his website today.
Permanent Link to Despair over financial
policy observes that the Geithner plan has now been leaked in detail,
and that- it's precisely the plan that was rejected two weeks ago. "The
ideas have won."
His final sentence, "What
an awful mess."
He's followed this with, "Permanent Link to More on the bank plan".
In it, he says, "So
now we have a bank crisis. Is it the result of fundamentally bad
investment, or is it because of a self-fulfilling panic?... But if you
think that the banks really, really have made lousy investments, this
wonít work at all; it will simply be a waste of taxpayer money."
His final sentence: "So
itís just horrifying that Obama ó and yes, the buck stops there ó
has decided to base his financial plan on the fantasy that a bit of
financial hocus-pocus will turn the clock back to 2006."
Permanent Link to CBO projections
the new, pessimistic CBO
Matters could still turn out better (or worse) than Dr.
Krugman anticipates, but suffice it to say that as it stands, the
augurs aren't good for an imminent economic turnaround.
President Obama has just announced that he wouldn't
accept Treasury Secretary Geithner's resignation even if it were offered: Obama Says He Wouldn't Accept Geithner's Resignation.