Rich Lowry, editor of the "conservative" National Review, argues for a “semi-nationalization" of insolvent U.S. banks. Seth February 13, 2009 12:00 AM Caution: Zombie Economy Ahead The Japanese example must not be repeated. By Rich Lowry Computer hackers managed to hijack a digital road sign in Austin, Texas, the other day and change its message to “Zombies Ahead.” It was a whimsical warning for that stretch of Texas road, but could have served as a deadly earnest statement about the U.S. economy. “Zombie banks” was the term for Japanese financial institutions propped up by government in the 1990s despite their basic insolvency after a real-estate bubble. These unprofitable banks, in a financial revenge of the living dead, cast a decade-long pall over Japan. At the time, American officials like Pres. Barack Obama’s economic guru Larry Summers urged the Japanese to give up on failed institutions. Instead, Japan pumped 12 percent of its gross domestic product into saving the banks and got a “lost decade” of economic stagnation in return. Economic analysts across the board agree that the Japanese example must not be repeated, even as our lawmakers stumble into repeating it. (clip) http://article.nationalreview.com/?q=ZjFhYTExN2JkZTA3NjVlMTVkZTA2ODJmMDdkNTI0ZGE=
Date: Sat, 14 Feb 2009 05:14:23 -0800 From: John Gulick <[email protected]> Subject: [Pen-l] Cautionary tales from Japan To: <[email protected]> Cc: John Gulick <[email protected]> Message-ID: <[email protected]> Content-Type: text/plain; charset="windows-1252" LP posted: “I think they know how big it is, but they don’t want to say how big it is. It’s so big they can’t acknowledge it,” said John H. Makin, an economist at the American Enterprise Institute, referring to administration officials. “The lesson from Japan in the 1990s was that they should have stepped up and nationalized the banks.” Gulick: Wow, the times, they is a changin'. The AEI is endorsing bank nationalization. What could be next? Socialized day care?
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