Paul Krugman: Where are the Grownups?

[Cheney Killed Bambi]

Many people on both the right and the left are outraged at the idea of using taxpayer money to bail out America’s financial system. They’re right to be outraged, but doing nothing isn’t a serious option. Right now, players throughout the system are refusing to lend and hoarding cash — and this collapse of credit reminds many economists of the run on the banks that brought on the Great Depression.

It’s true that we don’t know for sure that the parallel is a fair one. Maybe we can let Wall Street implode and Main Street would escape largely unscathed. But that’s not a chance we want to take.

So the grown-up thing is to do something to rescue the financial system. The big question is, are there any grown-ups around — and will they be able to take charge?

http://www.nytimes.com/2008/09/26/opinion/26krugman.html?pagewanted=print

[mzmolly]

1. Paul on the need for a bipartisian plan....

"This has to be a bipartisan plan, and not just at the leadership level. Democrats won’t pass the plan without votes from rank-and-file Republicans — and as of Thursday night, those rank-and-file Republicans were balking."

[stillcool]

2. too late now...

The republicans took their toys and went home. We're into theatrics.

[nadinbrzezinski]

3. Ah the smell of rational thought

thank you

[Naturalist]

6. I have lived for years without the market

and will continue to do so. I invest in something tangible. Something I can touch. Something that will provide me food. There is nothing rational about keeping this system alive. A new one needs to be born and the criminals in jail.

[nadinbrzezinski]

8. I want to hear your plans for the glorious revolution

and are you leading it?

Oh and if you think you'll go through this unscathed I have some swamp land for sale in florida (extra points if you even know where that phrase comes from)

[scarletwoman]

4. "...players throughout the system are refusing to lend and hoarding cash"

So, they HAVE cash? Why then do we need to give them ours?

Unh, uh. No way. Don't be giving MY money to these assholes! They all wanted an unregulated "free market" -- I say, let them have what they want.

NO GOVERNMENT INTERVENTION!

sw

[Naturalist]

7. and he thinks he's rational

it's always 180 degrees from the truth with these people.

[nadinbrzezinski]

9. Google LIBOR

then try connecting a dot or two

[bridgit]

5. Good Q, rec5

[magellan]

10. I'd just like a grownup evaluation of the eventual TRUE cost (i.e. risk exposure) to taxpayers

...along with a grownup evaluation of the likelihood of that figure not pounding the economy into the ground through dollar devaluation/inflation, while banks collapse anyway, and CDSes unwind, leaving us in the same place we'd be in without a bailout.

It seems to me the amount of cash needed will far surpass $700 billion, and the only people who'll benefit from it are the CEOs.

[dailykoff]

11. Yeah, let's pipleline 700 B out of the country via Goldman Sachs

before the dollar is completely worthless, because we haven't been ripped off enough already. Now it all makes perfect sense, thank you Mr Krugshill!

[OakCliffDem]

12. Kicked and Recommended