Wednesday, February 18, 2009

Forget the Hype (& Fear): Barry O and Team Are Way Ahead of the Curve -- Bank Nationalization Even the GOP Can Love

Remember on Election night, when after so many years of Dem defeats, we couldn't believe that we finally had an intelligent, sophisticated, highly educated, and politically astute candidate, a New Model for the New Millennium, who could actually break on through to the Presidency? Until the last possible moment, we imagined that we could actually be saddled with a McCain-Palin Presidency which in our worst fears would be a George Bush Do-Over?

Well, in the opening weeks of the new Adminstration, as President Obama and his team struggled through what appeared to be political missteps of the Cabinet nomination process, and then the uncertainy around his efforts to achieve bi-partisanship on the Stimulus Bill, there was a little uncertainty, hedging, nervousness on the part of even Dyed-in-the-Wool-Obama- Supporters.

Now, despite the concern attendant upon the Heavy Lifting that the Stimulus Bill represents, and the public's acceptance that the Daschle resignation was unfortunate, but in keeping with President O's setting of the High Ethical Bar that hopefully will be a hallmark of his administration, the fog is beginning to set a bit, and we can still see a bit of sun on the Gloaming. A great example appeared in Financial Times, where all of the GOP nay-saying is revealed to be what it is, an effort at face-saving, and independence, where it can be maintained. But the reality is, Barry O, of Hawaii, Indonesia, NYC/Columbia U., Chicago, and Washington, DC, has some solid ideas that he is willing to push through. And when the pedal is to the metal, and someone says, look, guys, we've got to try this, even the Republicans will listen.

In this case, the nationalization of Banks, one of the huge No-no's in the American Canon for a long time, but which has been recommended as a key tool for getting the US back on a firm financial footing. Barry O is contemplating the "Swedish Model" as the best means to achieve this, and even the Grand Old Party may be beginning to listen:

<em>
Bank nationalisation gains ground with Republicans
By Edward Luce and Krishna Guha

Published: February 17 2009 19:44 | Last updated: February 18 2009 01:07

Long regarded in the US as a folly of Europeans, nationalisation is gaining rapid acceptance among Washington opinion-formers – and not just with Alan Greenspan, former Federal Reserve chairman. Perhaps stranger still, many of those talking about nationalising banks are Republicans.

Lindsey Graham, the Republican senator for South Carolina, says that many of his colleagues, including John McCain, the defeated presidential candidate, agree with his view that nationalisation of some banks should be “on the table”.


Barack Obama, the president, who has tried to avoid panicking lawmakers and markets by entertaining the idea, has moved more towards what he calls the “Swedish model” – an approach backed strongly by Mr Graham. In the early 1990s Sweden nationalised its banking sector then auctioned banks having cleaned up balance sheets. “In limited circumstances the Swedish model makes sense for the US,” says Mr Graham.

Mr Obama last weekend made clear he was leaning more towards the Swedish model than to the piecemeal approach taken in Japan, which many would argue is the direction US public policy appears to be heading.

“They [the Japanese] sort of papered things over,” Mr Obama said. “They never really bit the bullet . . . and so you never got credit flowing the way it should have, and the bad assets in their system just corroded the economy for a long period of time.”

Administration officials acknowledge that the rescue plan unveiled by Tim Geithner, Treasury secretary, last week could result in the temporary nationalisation of some weak banks.

The plan sets out a framework for revealing the extent of the likely credit losses facing banks. Most private sector analysts believe the exercise will reveal that some banks have large capital shortfalls.

Policymakers acknowledge that if this is indeed the case, it will be difficult for those with the largest shortfalls to raise the required equity from the markets, in which case the government would probably have to take temporary control. Moreover, while nationalisation remains taboo in some political circles it is increasingly openly discussed among past and present economic policymakers of all leanings.

http://www.ft.com/cms/s/0/2ad3b750-fd27-11dd-a103-000077b07658.html?nclick_check=1

No comments:

Post a Comment

Current Reading

  • Midnight Rising: John Brown and the Raid that Sparked the Civil War- Tony Horwitz
  • A Sultan in Palermo - Tariq Ali
  • Hitch-22: A Memoir - Christopher Hitchens
  • Negropedia- Patrice Evans
  • Dead Funny: Humor in Nazi Germany - Rudolph Herzog
  • Exile on Main Street - Robert Greenfield
  • Among the Truthers - A Journey Among America's Growing Conspiracist Underworld - Jonathan Kay
  • Paradise Lost - John Milton
  • What Is Your Dangerous Idea? Thinking the Unthinkable - John Brockman
  • Notes from the Edge Times - Daniel Pinchbeck
  • Fringe-ology: How I Can't Explain Away the Unexplainable- Steve Volk
  • Un Juif pour l'exemple (translated as A Jew Must Die )- Jacques Cheesex
  • The God Delusion - Richard Dawkins
  • Pale King - David Foster Wallce
  • David Bowie: Starman bio - Paul Trynka
  • Tobacco Stained Mountain Goat - Andrez Bergen
  • The Future of Nostalgia -Svetlana Boym
  • Living in the End Times - Slavoj ZIzek
  • FIrst as Tragedy Next as Farce - Slavoj Zizek
  • How to Survive a Robot Uprising - Daniel Wilson
  • Where is My Jet Pack? -Daniel Wilson
  • Day of the Oprichniks - Vladimir Sorokin
  • Ice Trilogy - Vladimir Sorokin
  • First Civilizations
  • Oscar Wilde -Andre Maurois
  • The Beats - Harvey Pekar, et al
  • SDS - Harvey Pekar, et al
  • The Unfinished Animal - Theodore Roszak
  • Friends of Eddy Coyle
  • Brooklands -Emily Barton
  • Abraham Lincoln - Vampire Hunter - Seth Grahme-Smith - Entertaining and historical
  • Dictionary of the Khazars - Pavic
  • Sloth-Gilbert Hernandez
  • War and Peace- Leo Tolstoy
  • Charles Addams: An Evilution
  • Life in Ancient Greece
  • Time - Eva Hoffmann
  • Violence - S. Zizek
  • Luba - a graphic novel by Gilbert Hernandez
  • Life in Ancient Egypt
  • Great Apes - Will Self - riveting and disturbing
  • Lost Honor of Katherina Blum - Heinrich Boll - could not put it down
  • Yellow Back Radio Brokedown - Ishmael Reed (author deserving of new wide readership)
  • Living in Ancient Mesopotomia
  • Landscape in Concrete - Jakov Lind - surreal
  • 'There Once Lived A Woman Who Tried To Kill Her Neighbor's Baby'-Ludmilla Petrushevskaya - creepy stories - translation feels literarily "thin"
  • Mythologies - William Butler Yeats (re-read again & again)
  • How German Is It ? - Walter Abish
  • The Book of Genesis - illustrated by R. Crumb - visionary
  • "Flags" - an illustrated encyclopedia - wish I could remember all of these. Flag culture
  • Sirens of Titan - Kurt Vonnegut
  • Ubik - Philip K. Dick
  • Nobody's Fool - Richard Russo
  • Hitler's Empire - Mark Mazower
  • Nazi Culture - various authors
  • Master Plan: Himmler 's Scholars and the Holocaust - Heather Pringle
  • Eichmann in Jerusalem - Hannah Arendt
  • Living in Ancient Rome
  • Traveling with Herodotus -R. Kapuszynsky
  • Oblivion - David Foster Wallace - Some of his greatest work
  • Infinite Jest - David Foster Wallace - still wrestling with this great book
  • Netherland - Joseph O'Neill - staggeringly great read
  • Renegade - The Obama Campaign - Richard Wolffe
  • Mount Analogue - Rene Daumal
  • John Brown
  • Anathem - Neal Stephenson - love Stephenson but tough slogging first few chapters
  • 7 Deadly Sins
  • ALEX COX - Alex Cox
  • FIASCO by Thomas Ricks
  • I, Fellini - Charlotte Chandler & Federico Fellini
  • Best of 20th century alternative history fiction
  • Judah P. Benjamin - Eli Evans - Confederacy's Secretary of State & source of the W.C. Field's exclamation
  • Moscow 2042 - Vladimir Voinovich - Pre-1989 curiosity & entertaining sci fi read; love his portrayal of Solzhenitsyn-like character
  • Gomorrah - Roberto Saviano - Mafia without the It-Am sugar coating. Brutal & disturbing
  • The Sack of Rome - Celebrity+Media+Money=Silvio Berlusconi - Alexander Stille
  • Reporting - David Remnick - terrific journalism
  • Fassbinder
  • Indignation - Philip Roth
  • Rome
  • Let's Go Italy! 2008
  • Italian Phrases for Dummies
  • How to Pack
  • Violence - Slavoj Zizek
  • Dali: Painting & Film
  • The Gang That Couldn't Shoot Straight - Jimmy Breslin
  • The Good Rat - Jimmy Breslin
  • Spook Country - William Gibson
  • A Blue Hand - The Beats in India - Deborah Baker
  • The Metaphysical Club - Louis Menard
  • Coast of Utopia - Tom Stoppard
  • Physics of the Impossible - Dr. Michio Kaku
  • Managing the Unexpected - Weick & Sutcliffe
  • Wait Til The Midnight Hour - Writings on Black Power
  • Yellow Back Radio Brokedown - Ishmael Reed
  • Burning Down the Masters' House - Jayson Blair
  • Howl - Allen Ginsberg
  • Cat's Cradle - Kurt Vonnegut
  • The Palace Thief - Ethan Canin
  • John Adams - David McCullough
  • The Wooden Sea - Jonathan Carroll
  • American Gangster - Mark Jacobson
  • Return of the King - J.R.R. Tolkien
  • Gawker Guide to Becoming King of All Media
  • Jews and Power - Ruth Wisse
  • Youth Without Youth - Mircea Eliade
  • A Team of Rivals - Doris Goodwin
  • Ghost Hunters -William James and the Search for Scientific Proof of Life After Death - Deborah Blum
  • Dream -Re-Imagining Progressive Politics in an Age of Fantasy - Stephen Duncombe
  • Love & Theft - Eric Lott
  • Exit Ghost - Philip Roth
  • Studio A - The Bob Dylan Reader

Current Listening

  • Alexi Murdoch Wait
  • Wilco Summer Teeth
  • Wilco The Album
  • Carmina Burana - Ray Manzarek (& Michael Riesmann)
  • Polyrock - Polyrock
  • 96 Tears - Garland Jeffries
  • Ghost of a Chance Garland Jeffries
  • Yellow Magic Orchestra
  • Mustang Sally Buddy Guy
  • John Lee Hooker
  • Black and White Years
  • Together Through Life - B. Dylan
  • 100 Days 100 Nites - Sharon Jones & The Dap Kings
  • DYLAN: 3 disc Greatest...
  • Glassworks - Philip Glass
  • Wild Palms - Soundtrack -Ryuichi Sakamoto
  • Dinah Washington - Best of..
  • Commander Cody& His Lost Planet Airmen Live at Armadillo