notes dec 14 2008
December 14, 2008 § Leave a comment
Lots of confusion, like a partially filled in collage. Very hard to read from hints to solid predictions. Is there enough money to fix the economy? It will have to be borrowed from China. Will they lend (by buying treasuries) or decide that US infrastructure does not buy enough from China? Is the infrastructure project going to import steel from China? What about concrete? What about skills? What about the energy to produce the materials for infrastructure?
Can tying medical to rebuilding break through the insurance companies, or will they remain the well paid broker in the deal?
The Glaxo-Gates malaria vaccine, says the NYT ed page, but no hint as to which will own it when all is done.
Can the ME hold together, including Pakistan? Here I think Obama’s style can work well, but will the military industrial let him, given the dependency on jobs.s.
Medical reform costs 100 Billion, vs 700 from treasury to the banks?
Friedman is strong, much better than he used to be, flat hot and crowded got him on the better side. And today’s op ed is in that territory, But.
He comes out with good policies today on cars, Kabul and.. but not banks. He wants the government to buy all the bad assets. Sell them slowly (at a loss? how could it not be? they are worthless), and then we can get on, he says. The whole column ends up supporting the rich who made bad bets.
By ROBERT J. SHILLER
If the new president had a target of full employment, and if Americans believed that he could reach it, the confidence problem could be quickly solved.
By GRETCHEN MORGENSON
If Capitol Hill can scrutinize Detroit automakers, it should question financial institutions as well.