Paul Krugman And Donald Marron Debate Geithner’s Plan

Paul Krugman And Donald Marron Debate Geithner’s Plan


Krugman doesn’t like it because it doesn’t punish the behavior that got us into this mess in the first place. And while I have a soft spot in my heart for that line of reasoning, his idea of nationalizing the banks is a non-starter. I wish he realized that, but nonetheless.

Marron makes the point that Geithner’s plan won’t solve the entire problem, but it will allow us to actually price these assets once and for all, and that will rid ourselves of the “catching a falling knife” problem that is plaguing the mortgage backed securities right now. Because they could be worth a lot more than many think, but nobody wants to put money into something that everybody knows will go down. And that will, in turn, get it all moving again. At least that’s the hope.

Take a look…

Part One

Part Two

(h/t: The Big Picture)

  • http:[email protected] James E. Ryza

    Bad Actors Still Getting Big Bonuses, a subject I have been on for years.
    You give your best for a company, they tell lies to the government and public to get what they want. In our case they closed down the company,cheated the workers out of their severence packages, and awarded the executives with bonuses.

    I wrote an article to our local paper on this same subject and stated that investors should lose everything because in most cases, they know nothing about what is going on. I have a lot of experience from the inside, something you do not get in school, yet most think I know nothing.

  • http:[email protected] James E. Ryza

    My solution to health care. Cut company lobblyin and campaign contributions. Reduce coporate salaries, especially those on Wall Street, reduce money for sponsoring professional atletes and teams, and bring down lawyers salaries.

    For every $1,000,000 saved, it puts into the system: $40,000 yearly salary, 5,500 into the medicare and social security system, 15,000 for health insurance, 10 holidays, 80 hours vacation, and allow around 8,000 for other benefits and cost, do this for 14 people.

    These people are not at the social security cap so they pay the full amount, they also have no loopholes so they pay full income tax, and this might leave them something for retirement, the rest is circulated in the system.