Say No to Prof. Paul Krugman and Bank Nationalization
One of the biggest fallacy of Philosophy and logic is to appeal to Authority.
Let me quote the Feb 16. 09 NYT of Prof. Paul Krugman’ s writing:”…
temporary bank nationalization more from fringe to mainstream acceptance, with even Republicans like Lindsey Graham conceding that it may be necessary.”
Do not mistaken me; I am the fan of Paul Krugman. And I always admire his prescient forecast about the foreclosure coming US and the Japanese bubble in the 1980s!
I like Paul Krugman, but I would like the truth more! That is why I write two articles to rebuke his point of “temporary bank nationalization” and his appeal to the mediocrity congressman, Lindsey Graham. If Readers review the era of Bill Clinton VS Newt Gingrich. For political gain , purpose and motivation, Newt Gingrich said no to Clinton on every Policy! I suspect GOP uses the same Newt Gingrich’s strategy to weaken Obama’s position in order to gain political clout in the future election. GOP vs Obama on the unprecedented HISTORY AND BIGGEST 789 B stimulus plan, only three good Republican Senators joining Obama! We may assume most of the Republican congressmen are playing politics not reasoning, including this Senator Graham. If the Republic Congressman and Congresswoman are smart enough to understand the literacy about economy and finance under the eight years of Bush administration. WE WOULD NOT HAVE THIS SITUATION, the second biggest recession going to depression. And we may assume Senator Lindsay Graham fail this country at least in the economic side. Review his record on economy policy in Bush Administration, I did not feel comfortable about Lindsay Graham, his most weakness is in economy.
To my surprise, now Prof.Krugman appeals the acceptance of temporary bank nationalization to Senator Lindsay Graham, who is even not an authority in Economy in beltway Washington! What a hurry and unwise!
After British superman Gordon Brown temporary nationalized the UBS, SEE WHAT HAPPEN TO ENGLAND NOW? Recent data shown England’s Recession deepens and the worst may to come! My point is that England even does not have 10-trilion deficit AND THE 3- TRRILION DOLLAR IRAQ WAR like US and has some reserve to back up her Pound; Prime minister Brown’s Bank nationalization is not working in his direction. We, America has nothing except the military power to back up our currency, has astronomical trillion debt owned by China, Taiwan, Japan, Russia, HKSAR, Saudi Arabia…., Plus 10-trillion deficit and the legacy of Bush’s 3 –trillion war. By using the printing-money-method to nationalize the Bank! WHAT IS YOUR LOGIC, PROF.Krugman?
We all agree the power of 789 B is not enough for this kind of recession, that is why I support Tim Geithner to use part of the private money to bail out the bank (See my previous writing in Bightink please) . Do not worry the evaluation of the bad bank asset (It is an insult to CPA!). After the stress test and honestly to open the Bank book, the bad Bank and Tim Geithner and his CPA staffs will know their value of the bad asset. Some smart businessman like George Soros, Mr. Michael Dell and the legendary Warren Buffett or Chinese tycoon will invest in the new bank.