Charles writes:
Actually, I think so much leftwing and bankbashing agitation in the bourgeois media, Wolfe, Krugman et al is a very, very good thing. ...Of course, isn't Wolfe's proposal faux socialism ?...I don't see Krugman or Wolfe raising questions about the system... ================================================= They're not socialists so they can't be accused of not being what they don't pretend to be. But, as you say, the calls for nationalization, even if only intended as a as a temporary expedient to save capitalism, are a very good thing in the sense that a) wasting billions upon billions on zombie banks is not in our interest as taxpayers and wage and salary earners; b) revived discussion of public ownership in the political realm, from which it had been banished for decades by a triumphant capitalism, is in our interest - no matter how it's initially posed, with whatever motive, and from whatever quarter. Raghu posted an article yesterday by the Dutch-British economist, Willem Buiter, one of the more prominent advocates of nationalizing the banking system, which is well worth reading: http://blogs.ft.com/maverecon/2009/02/good-banknew-bank-vs-bad-bank-a-rare-example-of-a-no-brainer/. Buiter wants new state banks created with TARP and like public funds elsewhere, allowing the big private ones to collapse with their impossible to value toxic assets. Joseph Stiglitz and Paul Romer, whom Buiters references, have made similar proposals, as have Krugman and Wolf. Their indictment of the current policies of national treasuries and central banks to inject capital into the failed institutions and to assume responsibility in one way or another for the massive losses on the now near worthless stocks, bonds, and derivatives incurred by reckless private investors is something we can all get behind without reservation. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
