I think Obama and crew should stick to making structural adjustments, and hold off on the spending. Lack of accounting, much less accountability, was a large causal factor in the current crisis. So was a lack of transparency, not only within the fincancial sector but within government as well. Those are relatively obvious fixes. The bailout is not. Nor are others in the pipeline that Bloomberg talked about in its $7 trillion story.

What exactly is the $700 billion “stimulus” being spent on? The fact that Bailout Sleuth exits is testimony enough to the problem. (And it looks like it’s doing a job there.)

Listen to Krugman, then do the opposite of what he says.

Another try at Paul Krugman’s piece:

FOCUS | Paul Krugman: What to Do
http://www.truthout.org/113008Y
Paul Krugman, New York Review of Books: “What the world needs right now is a rescue operation. The global credit system is in a state of paralysis, and a global slump is building momentum as I write this. Reform of the weaknesses that made this crisis possible is essential, but it can wait a little while. First, we need to deal with the clear and present danger. To do this, policymakers around the world need to do two things: get credit flowing again and prop up spending.”

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His piece is worth reading in its entirety.

Keep up the good work, Doc! You’re not becoming a republican. They never admit their mistakes or change their minds.

The idea that someone should always be right and never make a mistake is the George Bush doctrine… and look where that got us.

The tentative nature of blogging that you’ve told us about for a long time now applies to you as well. If you’re not sure, just say so at the start, and dive in anyway. You might get some answers, or better yet, some insight.

Shutting up when you’re sure is great when you’re trying to defuse a bomb, and there are only seconds left… but we’ve got time, and we should take it to inform each other, and start exploring the problem space and solution sets.

It’s ok to be wrong… I’m wrong a lot, but I don’t let it stop me. I admit when I was wrong, and everyone respects me all the more for it. Sticking to it, and getting the important issues out in the sun is the best thing all of us can do.

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All that being said, I initially dismissed Naomi’s ideas as a bit too far of a reach from reality… but she’s turning out to be remarkably prescient
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If not, leave it alone.

I’ll admit to flailing, but I don’t admit to following anybody. Some folks have made sense to me. Joe Stiglitz. Kevin Phillips. Bogle. Though I gotta say I can’t tell you what they’re saying right now.

For what it’s worth, I like Naomi Klein, and agree with a lot of what she says. Not all of it, but a lot.

As for becoming a Republican, far from it. Not sure what more to say about that, at least right now, in a hotel room with a need to sleep and two others in the room asleep already.

And you’re right that there are some people who know what to do. I’m sure there are.

I don’t know who they are. Not sure you do either.

As for being shocked, I don’t feel that way. Confused is more like it.

One thing I am sure about is that the effects of spending great big piles of money we don’t have will be hugely inflationary. Can you tell me how it wouldn’t be?

Meanwhile you’ve convinced me I should just shut up about this until my mind is made up. It isn’t now and isn’t likely to be for awhile.