Re: [Pen-l] "Has Barack Obama's presidency already failed?"

[Marvin Gandall <marvgandall@xxxxxxxxxxxx>]

Charles writes:

Actually, I think so much leftwing and bankbashing agitation in the
bourgeois media, Wolfe, Krugman et al is a very, very good
thing. ...Of course, isn't Wolfe's proposal faux socialism ?...I don't see
Krugman or Wolfe raising questions about the system...
=================================================
They're not socialists so they can't be accused of not being what they don't
pretend to be.  But, as you say, the calls for nationalization, even if only
intended as a as a temporary expedient to save capitalism, are a very good
thing in the sense that a) wasting billions upon billions on zombie banks is
not in our interest as taxpayers and wage and salary earners; b) revived
discussion of public ownership in the political realm, from which it had
been banished for decades by a triumphant capitalism, is in our interest -
no matter how it's initially posed, with whatever motive, and from whatever
quarter.

Raghu posted an article yesterday by the Dutch-British economist, Willem
Buiter, one of the more prominent advocates of nationalizing the banking
system, which is well worth reading:

http://blogs.ft.com/maverecon/2009/02/good-banknew-bank-vs-bad-bank-a-rare-example-of-a-no-brainer/.

Buiter wants new state banks created with TARP and like public funds
elsewhere, allowing the big private ones to collapse with their impossible
to value toxic assets. Joseph Stiglitz and Paul Romer, whom Buiters
references, have made similar proposals, as have Krugman and Wolf. Their
indictment of the current policies of national treasuries and central banks
to inject capital into the failed institutions and to assume responsibility
in one way or another for the massive losses on the now near worthless
stocks, bonds, and derivatives incurred by reckless private investors is
something we can all get behind without reservation.




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