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View Diary: Geithner and his pseudo liberal critics (231 comments)

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  •  You must be protecting a weak heart (15+ / 0-)

    from being startled then, because Baker was completely in favor or bailing out GM:

    The Obama administration’s plan for General Motors is a serious effort to try to make the best of a really awful situation.

    In the current economic climate, sitting back and allowing GM to be liquidated was not a serious option. This would have wiped out a whole network of suppliers and ancillary businesses in Michigan, Ohio and Indiana, devastating the economies of these three states.

    The federal government would have been forced to step in with large-scale aid, in this case, just to prevent mass destitution. The state and local governments would have lacked the resources just to maintain basic services like schools, hospitals and sanitation facilities. Of course, the plan is not perfect, and it can be argued that one or another of the parties got too much or too little.

    How very Hayekian of him. I'm sure libertarians have been talking like that for years.

    Oh - he said "the plan is not perfect". Insufficient idolatry by your standards, I'm sure.

    Modern revolutions have succeeded because of solidarity, not force.

    by badger on Sun Feb 03, 2013 at 10:50:49 AM PST

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    •  Romer also approved the auto-rescue (4+ / 0-)

      but both accept the neoclassical theory that financial markets should direct investment and so both minimize the importance of direct intervention.

      If Morgenstern had said  mentioned the auto-rescue while echoing Bakers critique, it would be a very different article.

      And, just to be complete, I think the auto-rescue was quite flawed - bondholders were overpaid and the board should have been more deeply reformed.  The critical point, however, is that the "liberal/left" summaries of the Geithner term have uniformly ignored the auto-rescue as if it didn't happen at all. That's significant.

      self-appointed intellectual cop

      by citizen k on Sun Feb 03, 2013 at 11:19:51 AM PST

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