Today is a big day. Press conference #2 is tonight. (Not to worry, your trusty corrOspondent will do the play-by-play again).
And the advance work is already beginning on the upcoming G20 Summit in London.
Today, in 30 newspapers worldwide, Obama published an op-ed in an attempt to set the table for the upcoming conference which will likely focus solely on fixing the banking mess.
It’s clear that Obama is pitching that other countries, facing similiar economic crises, follow similar recovery plans as the United States. Best line: “I know that America bears our share of responsibility for the mess that we all face. But I also know that we need not choose between a chaotic and unforgiving capitalism and an oppressive government-run economy. That is a false choice that will not serve our people or any people.”
Tweet
By running scared from the very idea of a “government run economy” Obama is touting a plan in which the government invests $6 for every $1 from private industry to buy “toxic assets” well above their actual value. Private industry will get the profits, but government will assume the risk. It will cost $2 trillion. And if it doesn’t work, we will have little chance at having access to that kind of money again to create a green economy that puts people back to work.
THIS IS A VERY BAD IDEA!!!
Check this Link on Krugman’s critique of the bailout: “I don’t see a turnaround on what matters to most people… I don’t where recovery comes from at all in terms of starting to become a jobs-creating economy again.”
Thanks Trevor. The bailout story involves confusing details (math, anyway), and any sources you can recommend to folks is appreciated.
And Krugman always.