Popularism Rises!

I am struck by the fact that I, a person who often sides with views associated with the "masses", do NOT agree with the current flare of popularism resulting from the AIG fiasco. The anger against the bonuses awarded AIG people who ruined so much of the economy is understandable, the result is disturbing, viz., legislative actions designed to "rectify" the damage.

With so many losing so much, especially those who are retired or approaching retirement with 401K losses, it is rational to be angry when hard-earned monies evaporate. Yet, when people are determined by anger, the consequences can be catastrophic, e.g., history shows dictators arise in such circumstances.

it is clear that this is a most depressing time, regardless of how we label the degree of recession/depression. We are in a pickle!

I am hoping that the administration's plan to address the toxic assets work, in spite of Krugman's views. I admit to some doubts but I am also sharing concerns about our deficit. Surely, I am aware that our national survival depends on others buying our treasury notes. If such were to become "less valuable" for reasons related either to inflation (too much printing of money) or perception (others concerned that we can not make payments), we could experience real pain.

Krugman today is more specific about this opinion that the proposed plan WILL NOT work. He still advocates the need for the government to temporarily take over the banks until toxic assets can be sold at reasonable prices and then, sell the banks to new investors. How can I not cringe when Krugman is not on board with the Administration's plan!

For the moment, I want to remain rational and somewhat logical. I admit that my circumstances are more benign than those of many expressing their anger. At the same time, we have to keep our perspective clear. Greemway's fear is not unrealistic!