Saturday, January 23, 2010

Obama's left turn

I wrote a column in Financial Express about Obama's left turn.
Also see:

3 comments:

  1. 'The caricature that makes the public irate is that of bankers getting money from the government and paying it out to themselves as bonuses. This caricature is largely inaccurate, '

    http://www.nytimes.com/2010/01/24/opinion/24Rich.html?em

    please read the above ny times piece and you will get a sense of why the caricature is accurate and generates the response that it does.

    also when you look at economics, politics and the governance structures are an important part. one cannot ignore it.

    if a section of the economy controls policy making in india it bad, but if bankers control it in usa it is not bad. i think you need to explian the contradiction.

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  2. Any economist will agree that the concentration of US banking in a few firms is a worrisome feature of the recent years. But few would support solving this through government diktat.

    Most informed opinion believes that only the government can solve the TBTF issue through legislation. I am not sure why you think this lacks support amongst economists.

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  3. Do read Raghuram Rajan on this.

    Basab, we agree that TBTF is a problem and we agree that legislation will be involved. We strongly disagree with blunt and crude measures.

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