According to Krugmen, things are always falling apart. But I guess if you constantly predict the end of everything then you will be right the only time it matters.
You seem to be implying that the economy has been good for the last 8 years (it hasn't for most Americans), that the American economy doesn't have any fundamental imbalances (it has), that G W Bush is a good president (he hasn't) and that the war in Iraq was well managed. (It wasn't)
The ideological cyclopes calling Krugman shrill for pointing out those glaringly obvious facts are the real problem for the US.
Do we really need the sensationalist article titles? To tell the truth, the Dow is up a bit from its opening price, and the dollar gained a little bit from its low.
Repeat 3 times: "The stock market is not the economy."
A bailout is _good_ for the stock market, especially the financial sector, since it means the government will back any bad decision the top 20 Wall Street firms make.
A bailout is bad for the economy because it will devalue the currency, fire inflation, keep firms alive that should have been killed, and make unavailable capital that would otherwise be available to new firms. Can you say "Stagflation"?
I agree that the headline used is sensationalistic, but most people don't know who Paul Krugman is, and "The B Word" leaves a lot to be desired as a headline. I would suggest the headline:
Paul Krugman: "a bailout is inevitable"
That makes it clear that it's an opinion piece, and clearly conveys the core message of the post.
The fed has long since bailed out the financial markets by pumping out dollars to the extent that most people's assets, including property and salaries, are now quite a bit closer to worthless.
Krugman can't be trusted. He criticizes for Greenspan...for Greenspan's mass inflationary policies, hmm?...oh, no. Rather for Greenspan's alleged faith that "the market is always right". That's not the sort of religion that sends one into a career of central banking.
A once-in-a-lifetime liquidity event is approaching, and you will know the winners of the game by whatever "Russian Billionaires" show up in high-end London apartments in the coming decades.
Back in the 90s in Japan at least a lot of the Nomura and LTCB execs and so on had the decency to off themselves after they wrecked the financial system and were exposed as crooks. Somehow I doubt they'll find Alan Schwartz in a motel room with a note of apology. We should import this fine Japanese tradition!
I'm jesting. But seriously, it would be nice to see some genuine sorrow from responsible people for a change. All you get is denial and excuses.
I remember the head of Yamaichi Securities on TV with tears streaming down his face bowing his head and begging forgiveness.
I think it would just shock some much needed sense into our culture if some powerful people who fucked up actually took the stage and said "I fucked up. I'm sorry."
