Prof. Krugman VS Tim Geithner, to whom will be right? (Part I)

Prof. Krugman VS Tim Geithner, to whom will be right? (Part I)\r\n \r\n To Geithner’plan , Prof. Krugman asserted that he will fail all the programs. It is totally permissive and out of evidence, a kind of assertion only could by made by HK academics………..please see Part II \r\n\r\n\r\n\r\n\r\n\r\n\r\n

Prof. Krugman VS Tim Geithner, to whom will be right? (Part I) First I would like to thank the young, hungry and innocent Mr. Geithner to stay on the most pressured job, Treasury Secretary. Young, for a 40+, he is young and not has very much experience in risk management. Hungry, who does not want to be TS? Innocent, he thinks he can handle the cunning and old Washington Politicians and the dogged media! Result, Mr. Geithner appeared lost 5 to 15 pounds because the pressure and hard work drove him loss weight. Buddy! You’d better taken Tai Chi exercise to clam down your stress and anxiety. And I hope Mr. Geithner is not Wall Street Trojan horse. Otherwise, I will "grass-mud-horse!( Chinese Joke!") (However, I suspect his predecessor may be either a Trojan horse of Wall Street or GS. Ask Lehman Brothers’ Richard Fuld , he may tell you!) Now comes to Prof. Paul Krugman. Same old words: I love Prof. Krugman, but I would love the truth more. The truth is that, Prof. Krugman criticized Geithner’s Public-Private Investment Program in his column, on March 23, 2009 NYT with his prediction in black and white Financial Policy Despair: It (Geithner’s plan) almost surely will fail! To my surprise, Prof. Krugman even didn’t wait to see the original copy came out, he concluded his prediction based on the leaked from The Times and other newspaper editions. During the 1998 Hong Kong Economic storm, I had seen and heard so many this kinds of "assertions!" No data , without any statistics and even not his specialty, the HK U very famous (in HKU famous not mean he is good!), economics major Professor Cheung XX predicted: If Hong Kong Government purchased stocks with tax payer’s money, Hong Kong will be dead because the governmental intervention! Result: He was dead wrong, HK survived! In hindsight, even his mentor, the late Milton Friedman admitted that: Economy is not science; HK Government may be right to intervene the market in an extraordinally time! Academics are always wrong, especially in the extraordinally time. Readers should take note: most Economy Schools in HK are not very high standard as US, So, does the Economy professor. Former economics Prof. Cheung XX of HKU made such silly assertion, not a bit of surprise to me. Difference, form most HK Economic Professors and Prof. Friedman. Prof. Krugman and I both support the intervention. Prudent is risk, waiting is danger! We both agree Big and Quick ferderal intervention. To my surprise Prof. Krugman still insists Swedish model to nationalize the bank (I oppose). Readers should read the article: Self-assembly Solution of March, 17 ,2009 of Financial Time about the bail out Swedish model. Here I quote some lines from it : "Contrary to the myth that surrounds the Swedish model, the Authorities nationalized only two banks- Nork Banken and Gota Banken ( This Author noted, Gota already in bankruptcy when it was nationalized!) The Authorities admitted that they were small banks not as big as City or Bank of America! And Sweden was not in recession like US kind at that time and they said: "May be we are successful, we will never know!" FT summarized this kind of feeling: Disconcerting! I doubt Prof. Krugman red this article! Now comes another truth of Mr. Geithner’s Public-Private Investment Program, to my understand, it has two key parts, "The two key elements of the plan are: • Legacy Loans Program: a program to combine an FDIC guarantee of debt financing with equity capital from the private sector and the Treasury to support the purchase of troubled loans from insured depository institutions. • Legacy Securities Program: a program to combine financing from the Federal Reserve and Treasury through the Term Asset-Backed Securities Loan Facility ("TALF") with equity capital from the private sector and the Treasury to address the problem of troubled securities." (Quoted from the Treasury white paper) To Geithner’plan , Prof. Krugman asserted that he will fail all the programs. It is totally permissive and out of evidence, a kind of assertion only could by made by HK academics………..please see Part II

LinkedIn meets Tinder in this mindful networking app

Swipe right to make the connections that could change your career.

Getty Images
Sponsored
Swipe right. Match. Meet over coffee or set up a call.

No, we aren't talking about Tinder. Introducing Shapr, a free app that helps people with synergistic professional goals and skill sets easily meet and collaborate.

Keep reading Show less

Brain study finds circuits that may help you keep your cool

Research by neuroscientists at MIT's Picower Institute for Learning and Memory helps explain how the brain regulates arousal.

Photo by CHARLY TRIBALLEAU / AFP/ Getty Images
Mind & Brain

MIT News

The big day has come: You are taking your road test to get your driver's license. As you start your mom's car with a stern-faced evaluator in the passenger seat, you know you'll need to be alert but not so excited that you make mistakes. Even if you are simultaneously sleep-deprived and full of nervous energy, you need your brain to moderate your level of arousal so that you do your best.

Keep reading Show less

34 years ago, a KGB defector chillingly predicted modern America

A disturbing interview given by a KGB defector in 1984 describes America of today and outlines four stages of mass brainwashing used by the KGB.

Politics & Current Affairs
  • Bezmenov described this process as "a great brainwashing" which has four basic stages.
  • The first stage is called "demoralization" which takes from 15 to 20 years to achieve.
  • According to the former KGB agent, that is the minimum number of years it takes to re-educate one generation of students that is normally exposed to the ideology of its country.
Keep reading Show less

How pharmaceutical companies game the patent system

When these companies compete, in the current system, the people lose.

Top Video Splash
  • When a company reaches the top of the ladder, they typically kick it away so that others cannot climb up on it. The aim? So that another company can't compete.
  • When this happens in the pharmaceutical world, certain companies stay at the top of the ladder, through broadly-protected patents, at the cost of everyday people benefitting from increased competition.
  • Since companies have worked out how to legally game the system, Amin argues we need to get rid of this "one size fits all" system, which treats product innovation — "tweaks" — the same as product invention.