From TPM Reader AC …
Josh, I am wholly out of my comfort zone in discussing the economy, but I’ve been following the arguments here, on Krugman’s blog, and over at Kevin Drum’s blog. Doesn’t the request by the administration for more powers to take over banks after they have shored-up some fear among the Wall Street crowd strike you as part of a bigger plan? Part of the problem, as I understand it, is that no one knows what these banks are holding. We soon will under Geithner’s plan, and hopefully, before the dust settles, we’ll have “forward looking” legislation in place that will serve to fix the very problems we’re facing now once we know what the banks have got. All without the incredible market turmoil that would occur if the administration started marching through a take-over powers bill without easing fears on Wall Street first.
I think this is an optimistic take, but by no means impossible. And I am curious to know more about the thinking behind the ‘ask’ now for the powers that could have allowed us to handle this situation much differently last fall.
TPM Reader PH is optimistic too …
I totally agree with AC about what the administration is doing. To use the explosive metaphor that is so popular now, the very FIRST thing that has to happen is to make the bomber feel less isolated, more comfortable. Offer a cigarette, a cup of coffee (OK i’ve seen too many movies) anything to get the attention off the switch in the other hand. Meanwhile, the SWAT team… well, you get the idea. I think President Obama has already shown that he is not going to be shy, and that he does not lack confidence, so indecisiveness and “going along with the status quo” are contrary to what we should expect from him. He has repeatedly said the system needs to be changed and most importantly re-regulated, but the first step is defusing the bomb, even if that means letting the bombers get away. For Now.
