Dub was a "center-right" Keynesian, and Obama is a center-left Keynesian. They have the same people in their economic teams, and they're reacting in exactly the same way. Who is insane enough to expect real change out of a Chicago politician?
IMHO, neo-Keynesian thought breaks down in a depression. You can't cure alcoholics by giving them more hooch, and you can't cure an abundance of debt by pushing more debt.
As painful as it will be, we need to let the big banks fail, the derivative markets evaporate, and the survivors make a mint off of picking up the broken pieces of the shattered companies and rebuild.
The alternative is Argentina.
Wednesday, February 11, 2009
A comment I posted over at Hoyazo's Blog
Hoyazo, aka the Hammer Player, is a Poker blogger who also does his share of economic commentary. In this post, he rants about Obama and Geither's new TARP 2 plan. I won't quote the post, but here's my comment I left at his site:
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