Comments on Krugman Today

Post a Comment Editors' Selections RSSAll Comments - Oldest First
1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | Next »1 - 25 of 178Show:Oldest First Newest First Readers' Recommendations Editors' Selections Replies
1.September 26, 2008 7:06 am
Link
Grown-ups: Let's get Bloomberg and Spitzer to come up with a solution along with a panel of academics (like Krugman!) and respected financial gurus (Buffet and Soros).

This administration and the financial illiterates in Congress are not going to solve this problem.
— LA, New York

Recommend Recommended by 98 Readers 2.September 26, 2008 7:06 am
Link
John F. Kennedy's "Profiles in Courage" comes to mind. We need some profiles in courage right now. I hope that Congress recognizes that many Americans tonight may not be thrilled about a bailout, but whether Democrats or Republicans, are pragmatic and badly want action to save us from a financial collapse. As Krugman aptly notes, we need the adults to take charge, right now.
— Tevis, Seattle, WA

Recommend Recommended by 23 Readers 3.September 26, 2008 7:06 am
Link
What you are all surprised? McCain is doing exactly what he has to do to survive! His chance of winning the election is virtually zero if this bailout goes through. The popular backlash against it will be tremendous and as the standard bearer of his party he and not Bush will get the blame on election day. Besides Bush by pushing this bailout five weeks before the election has effectively cashiered McCain's presidential bid whether he means it or not. The only way McCain will survive is to give Bush's plan the public thumb down which is what he is doing right now. Of course the House Republicans will support McCain. Ideologically they are more inclined to and politically their own survival is also at stake.

Why the entire Democrat leadership in Congress decides to align themselves with Bush on the bailout is the biggest mystery in this drama. Can't they hear the thunderous outcry across the country against the plan? Are they so out of touch with the voters? Or are they so arrogant to think they know better than the rest of America?
— tom007, Virginia

Recommend Recommended by 51 Readers 4.September 26, 2008 7:06 am
Link
Thank you Dr. Krugman for your well reasoned adult perspective. You are my favorite columist at the NY Times not least because you consistently bring clarity to complicated issues. You bring calm to the discussion rather than stir the pot of turmoil.
— MaryAnn, NYS

Recommend Recommended by 95 Readers 5.September 26, 2008 7:06 am
Link
Paulson was willing to settle for nothing in return for taxpayers' money. Telling him vaguely he has to insist on "equity," or "limits" on this or that is a complete joke. Put someone in charge who is serious about getting the best deal for taxpayers. Do not be frightened into accepting this deal! This is the time for citizens to retake control of our country!
— B. Mull, Irvine, CA

Recommend Recommended by 52 Readers 6.September 26, 2008 7:06 am
Link
Thank you, Paul. This seems simple, educational, and totally clear.

I hope you will next take on the job of explaining the likely consequences of the Republicans' "deregulation" substitute for the Paulson plan, that I heard described on a couple TV shows tonight.
— Max Reif, Walnut Creek, CA

Recommend Recommended by 41 Readers 7.September 26, 2008 7:06 am
Link
Day by day our credit markets are freezing up. The US is on the verge of a total economic meltdown. And what do the Republicans do? Play partisan politics for political gain. Essentially fiddling while Rome burns. Throws these bums out!
— jes, Laguna Niguel, CA

Recommend Recommended by 175 Readers 8.September 26, 2008 7:06 am
Link
The Republicans in the House have inadvertantly saved us from a terrible plan! We can only hope that the grateful voters will throw them out of office so it will be possible to forge some workable economic plan.

The devil being in the details, and speaking as a CPA, the plan is an administrative nightmare. It has no hope of easing the economic problems; it might keep things from getting worse. Let's drink to the Republicans - at least the beverage industry will benefit!
— Eliyahu, Arizona

Recommend Recommended by 19 Readers 9.September 26, 2008 7:06 am
Link
Thank you for your clear and easy-to-understand analysis, as you usually do. It is now clear, too, that there are some adults in Congress but we are letting a spoiled brat with tantrum to spoil adults' serious business. Why are you tolerating it? Just why? Why is there not enough public rage about it? Also, I have to point out that Obama is partially responsible for this sorry sequence of events for yesterday and today. If Obama did not initiate the sequence of events that began very early on Thursday by asking McCain to join a bipartisan effort or something, McCain may not have had a chance or excuse to make the kind of irresponsible move he did make. Or, at least, it would have been more difficult for him to create such a havoc all on his own. Obama can simply do what is right for the nation, in a truly bipartisan spirit, but he has no reason to call the irresponsible, capricious old man to join him in anything, does he?
— Nathan Nahm, New York

Recommend Recommended by 11 Readers 10.September 26, 2008 7:06 am
Link
We needed grown-ups when Wall street was running amok. They looked the other way. Now they are needed to step u p and take their role seriously - will at least the threat of this disaster bring them to their senses?
— ML, Va

Recommend Recommended by 6 Readers 11.September 26, 2008 7:06 am
Link
Perhaps the wisest thing to do would be, essentially, nothing. Let the troubled institutions die and the free market work things out. Use a fraction of the proposed $700 billion to extend unemployment insurance as well as provide other support to the truly needy (people, not corporations!). Maybe even allow bankruptcy judges to set new loan terms, perish the thought.

Finally - revisit the problem in January when the Master of Disaster has returned to Crawford.
— schneider40, California

Recommend Recommended by 97 Readers 12.September 26, 2008 7:06 am
Link
The "no adults" analogy is exactly what's been bouncing around in my head the last week or two. While I wouldn't know a dividend from a derivative, the whole mess seems like a bunch of squabbling children who have gotten themselves into a mess -- and each one has a nuttier "solution" than the next one. This could be the basis of a Hollywood coming-of-age blockbuster. Sadly, I keep thinking about the dignified leaders of the 1950s (McCarthy excluded, of course) and how they would see this if they were suddenly thrust onto the scene.

One thing that never seems to get mention is that just a few weeks ago, and for years before that every government and finance official was saying everything was fine -- perhaps a little rough on the edges, but fundamentally sound, strong, etc. And within a couple of days the whole thing verges on collapse. If it were all so fundamentally sound, how can this be? Were all those people, perish the thought, LYING? And if so, what else have they been lying about?

It's getting loony enough out here that I'm reassuring people they do not need to buy guns and stock up on ammo and food. I sure hope the adults show up soon -- and I hope they're adults we can believe.
— Tracy, California

Recommend Recommended by 37 Readers 13.September 26, 2008 7:06 am
Link
Some of the issues pointed out by Mr. Krugman can easily be solved under Czar Paulson. Clearly, since it is taxpayers' money and the many of those Corporate officers whose pay package Congresss wishes to limit are proabably Paulson's old buddies, the purchasing price should be at face value - so that more money will be pumped into the "system", no selfish reason here. As to the equity that taxpayers should keep, well one share - otherwise we will end up with a "socialized capitalism". That is a NO NO, against our free market religion. President what's-his-name made that clear last night. See problems solved.

I also don't like Mr. Krugman's comment about McCain not haveing time to read the plan - all three pages. Mr. Krugman should realize Senator McCain is busy being the white knight to save our financial system from ruins. Besides, does Mr. Krugman, being a professor and hence must be an elitist, realize how many hour will it take for us non-elitists, at the age of 72 (I am 71 so pleast don't accurse me of playing the age card), to read a three-page document, in large print? Just flipping the pages can be tedious!
— Steve Chan, Los Altos Hills, Ca

Recommend Recommended by 37 Readers 14.September 26, 2008 7:09 am
Link
We need leadership. We are not helped by anyone who proclaims "I am taking charge," and then steps up to the podium, only to stand like a deer frozen in the headlights. Leadership does not consist of making declarative statements with no rationale. "Often wrong, but never in doubt" is not good enough. Real leadership requires the ability to understand the situation, to figure out a solution (with expert advice) which may not be perfect, but is very good, and explain both clearly, simply, and forcefully to the people. We are still waiting for this leadership.
— Richard, Pasadena, CA

Recommend Recommended by 28 Readers 15.September 26, 2008 7:09 am
Link
To keep the atrocity of this in perspective, let's consider what $700B would buy for those of us who are RESPONSIBLE small business owners--those of us that always operate in the black, pay our rightful taxes and employ half of Main Street. $700B is the equivalent of giving EVERY incorporated business in the country $120,000--all 5.8 million of them. That won't go far at Lehman Brothers, but it could do a lot for many of the 4.3 million incorporated business with less than 20 employees. $700B is also the equivalent of paying the ENTIRE payroll of EVERY one of those incorporated business in America with less than 20 employees for an ENTIRE year!

If the government wants to save the economy, maybe it should consider investing in the segment of the economy that fuels the economy for most Americans instead of the part that has been draining it for decades.
— D.N., Chicago, IL

Recommend Recommended by 114 Readers 16.September 26, 2008 7:09 am
Link
Professor Krugman,
I'm a conservative (fiscal) and used to support the GOP. But the President has cried "wolf" so many times (usually right before an election) that I really don't know whether to believe him. If he were really scared of collapse, he wouldn't be throwing around words like "panic" "meltdown" "painful recession" etc. because it could create a self-fulfilling prophesy. Also, I think if he really was scared, he would accept at least some of the responsibility (this is the accountability administration, remember?). In sum, I don't believe him. I think a lot of fat cats stand to lose money and came up with an ingenious way to turn a loss into a profit. Bush certainly has shown that he is unconcerned with deficits. Am I wrong?
— Clay Allison, Waco, TX

Recommend Recommended by 155 Readers 17.September 26, 2008 7:09 am
Link
Paul, I love you and usually agree with your analysis. On this one, I'm struggling, since I find it difficult to continue giving (more) power to the same clowns who ran our economy aground. I have ZERO faith in them at this point, and I suspect I'm hardly alone. And a market that's eroded our faith and trust is a market that's going to have a tough time recovering. What seems different this time is that many Americans, even lunchbucket types, appear to "get" the con and are decidedly unwilling to bailout the tophat-and-monocle crowd. And they say class warfare is dead. Posh.
— Rasputin, Chicago

Recommend Recommended by 49 Readers 18.September 26, 2008 7:09 am
Link
It's becoming apparent that this whole disaster is a textbook example of "disaster capitalism." And it also appears that the Republicans are the ones standing in the way of an agreement. John McCain's hurling himself into the process only made matters worse, and his fellow GOP Senators and House members are creating the biggest roadblocks. The Republicans are trying to set up the denouement in such a manner so as to blame Obama and the Democrats for the mess for which the Republicans themselves deserve most of the blame. Welcome to the end of the U.S.A. as a major power in the world. The 2000 "election" was an initial step in the plan to turn us into a third world dictatorship, and we are witnessing the final chapter.
— Aredee, Madison, WI

Recommend Recommended by 141 Readers 19.September 26, 2008 7:09 am
Link
People out here away from the beltway are pretty mad about what looks like a hand out to the rich, while everyone else is struggling. Whether folks here support any part of this will depend on the limits to executive parachutes, equity for the taxpayers in the properties on the block and some attempt to punish the most egregious executives who lied to their stockholders or encouraged or allowed fraud. We do not need McCain riding in on his chariot to act like the hero. We do not need uber conservatives trying to attach everything under the sun to this bill. The Republicans are the children in this scenario. Their deregulation got us into this mess and now they are throwing a tantrum and threaten to take their toys and leave if they do not get their way once again. The sooner we kick the whole lot of them out the better we all will be.
— JeanV, Tucson, AZ

Recommend Recommended by 80 Readers 20.September 26, 2008 7:09 am
Link
Sometime on Friday or Saturday or Sunday John McCain will pull off a leadership miracle by persuading House Republicans to support a bailout plan somewhat sweetened to their liking. And if anyone who believes that has not been prearranged will send me their email addresses, I have a bridge I would love to sell them.
— Ken Hines, Athens, Alabama

Recommend Recommended by 116 Readers 21.September 26, 2008 7:09 am
Link
Right on the mark, Paul. This is one of your best columns of the last year.
— Tim in CA, Encinitas, CA

Recommend Recommended by 7 Readers 22.September 26, 2008 7:09 am
Link
Mr. Krugman has never been more spot on target.

People on the left are mad because it's Bush's mess and his administration's initial plan.

People on the right are mad because the Democrats have taken ownership on the issue.

Obama has taken the right tact to calm things down and stand by fixed principles from the beginning. But McCain has messed things up by turning this into a political power play even though he does not have a viable stance or plan.
— Kevin, Kennesaw, GA

Recommend Recommended by 118 Readers 23.September 26, 2008 7:09 am
Link
Certainly the adult McCain isn't the adult we need. He politized important negotiations just for the improvement of his poll numbers. It's too bad that the adults in Congress could not hammer out some kind of fix before it was high jacked by the spoiled GOP house brats that cannot work in a constructive manner to help all Americans.
— Glenn, Hawaii

Recommend Recommended by 46 Readers 24.September 26, 2008 7:09 am
Link
Paul Krugman has been both prophetic and a voice of reasonon the mortage crisis, no small feat and no small aid.

With events of such magnitude moving so fast, one regrets that Krugman's column for this Friday could not have been be revised following the late Thursday arrival of the House Republican "alternative" proposal -- or even following Thursday evening's House Republican defection from talks. One hopes for some kind of further word from Krugman before Monday.
— Alex Hicks, Atlanta, GA

Recommend Recommended by 21 Readers 25.September 26, 2008 8:28 am
Link
I am confused. Why is it a grown up thing for our elected officials to do something which the vast majority of their consitutency abhor: pay our taxpayer money for worthless securities.

If these financial institutions are actually failed institutions (which most Americans suspect), shouldn't standard bankruptcy proceedings come into play. Shouldn't the debtholders obtain equity interests in the these corporations. Unfortunately, the shareholders (including former executives with stock options) may be wiped out and the bondholders may not receive the full value for their investment. But that is capitilism. And when you step away from Wall Street, Americans that I have spoken to agree that is fair.

I find that the consensus is that any proposal whereby taxpayers buy securities rings injustice. Once real proposals are one the table, I think then grownups can vote.

Perhaps there is a reason why the founding fathers set up a system that discourages hasty decisions. Perhaps there is a benefit for our representatives to think this through.
— David, Los Angeles

Recommend Recommended by 26 Readers 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | Next »1 - 25 of 178