Paul Krugman on Geithner plan

2009 7:21 am

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The so called “Geithner plan,” is a misnomer; it is rather Bush-Obama arrangement. Because of the huge bailouts, for all practical purposes the financial industry in the US is nationalized. When Lenin nationalized private industry, including banks in Russia he appointed his politruks as new managers. The Bush-Obama politruks are the same people who caused the mess in the first place, who still maintain their old or higher salaries. Bush-Obama strategy attaches too much importance to financial industry and much too little to John McCain’s plumber and his colleagues. The immediate risk of this strategy is much higher than loss of clout of President Obama; major lenders such as China may decide that US economy with the present economic leadership in power is beyond repair. The President should appoint immediately a new economic team, preferably with members who do not read Wall Street Journal and who certainly have no record of employment in the “financial industry.”

— Aharon Meytahl, Vestal, New York