COVER STORY: THE ECONOMY

Obama’s Nobel Headache

Paul Krugman has emerged as Obama's toughest liberal critic. He's deeply skeptical of the bank bailout and pessimistic about the economy. Why the establishment worries he may be right.

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  • Posted By: GILLERAN @ 10/12/2009 5:43:18 PM

    We won't have any real financial reform until we have Campaign Finance Reform AND oust those bozos Geithner, Summers and Rubin. In the meanwhile, Krugman is the sole intelligent voice making sense of this mess. Obama would do well to invite him into the Cabinet.

  • Posted By: lamborghini @ 10/12/2009 9:01:22 AM

    Paul Krugman, keep fighting.

  • Posted By: sabretruthtiger @ 06/18/2009 9:51:41 AM

    Oh, and there is a possibility that the Ruling elite are planning to stage a fake alien invasion as an excuse for martial Law and sweeping powers. They've been testing advanced UFO-like craft for a while, and the recent X-file type themes in hollywood and the recent admissions of UFO files from Governments could be conditioning the public for what would be the biggest scam in history. Alternatively Aliens could really exist, it could go both ways, I prefer the latter.

  • Posted By: sabretruthtiger @ 06/18/2009 9:40:17 AM

    Lol, to quote Buzz Lightyear" You're mocking me aren't you" As for JFK and (possibly Abraham Lincoln), he was killed because he wasn't towing the line of the old banking families who really controlled America and still do, JFK was a people's president and got too big for his boots. Marylin Monroe who was highly intelligent knew too much also and was killed. The Bin Laden was a friend of the Bushes and his family was flown by them out of the USA before the attacks, he's probably living quite well somewhere, funded by America. (CIA? not sure)Ahmadiinejad could quite likely be part of the conspiracy,He's setting himself up as the bad guy so Obama can ride in on his white horse and put a stop to the threat he poses, Israel is in bed with the US and escalated the Palestinian conflict so Obama can bring peace there as well. It's all part of the plan to portray Obama and his Presidency as the messiah making the transition to a one world government a lot easier. I'm unsure as to how the illuminati fit in, all the evidence points towards the New world order wanting to destroy industrial society and send populations back to the age of merlin but without the really cool magic and dragons. Irrational thinking and doctrinal religion makes people easy to manipulate. The illuminati initially under Adam Weishaupt were always for rational thinking, science and the progression of civilisation, seemingly at odds with the New World Order. Although I'm not an expert on the Illuminati and I'm not sure how they have changed or what they have changed into or even if they're behind the New World Order! One thing I do know is a group of people have been poisoning us for decades with chemtrails, food additives, mercurial vaccinations, Adeno 36 fat virus causing obesity epidemic, fluoride in the water and also causing nasty natural disasters and illness with HAARP (High Frequency Auroral Research Program) in conjunction with GWEN (Ground Wave Network) HAARP, stationed in Alaska sends ELF (Extremely Low Frequency) radiation to targeted areas in the ionosphere that heat it up causing extreme weather. GWEN towers stationed around the US and god knows where else sends out ELF waves that change brainwave frequencies, like a tuning fork, causing depression or violence (noticed the huge rise in depression and violence in recent times?) The people behind this are evil in the extreme and are not for the progression of society as their plan kills intelligent, talented and witless alike. Such is the evil of the plan, it's easy to believe theories about Extraterriestrials or extradimensional entities being behind it, but one can never underestimate the greed and lust for power of some men.

  • Posted By: sabretruthtiger @ 06/15/2009 8:59:34 AM

    Ok all you sheeple, time to educate, pay attention because this is the way it is. The ruling elite comprised of the Rothchilds, Rockefellas and other old banking families are behind 911, the great depressions including the credit crisis and the swine flu. Their intention is to consolidate resources by orchestrating 911 as an excuse to grab Iraqi oil, and causing the credit crisis, fleecing us of billions and weakening and collapsing economies to create less resistance to the implementation of their new world order. Then the viruses come, the swine flu will mutate in successively more virulent waves killing millions. They do this because they want to reduce the world's population freeing up resources under their control. Obama is a puppet of these people he was placed in power to placate the people and lull them into a false sense of hope.
    Need proof?? 911 is now proven to be an inside demolition job (look up gage 911)Canadian branch of Baxter the company that makes Tamiflu was caught shipping avian flu IN their vaccinations! (look up Toronto sun article)

    • Posted By: pauvrerichard @ 06/15/2009 6:05:00 PM

      You forgot killing the Kennedys and UFOs. I knew that somehow Obama was responsible for the swine flu. Is it true Ahmadinejad and Bin Ladin work for the CIA? Where do the illuminati fit in? How much longer before the rapture? Keep posting sabretruthtiger, we need to know the truth!

  • Posted By: Angêl @ 06/09/2009 12:54:15 PM

    Obama failed when he decided to run for office. I think that he may be a student of history, and the history he is following leads to universal misery. History has shown that Obama's policies fail every time they are implemented; And, you think they will work now just because you want them too? Yes, focus on a solution, get involved in local politics and tell your fed representatives to get the fed government out of our way. The individual/private citizen and small businesses are what have made this country great despite government 'intervention'.

    ceraphine.blogspot.com

  • Posted By: divorcedmale @ 06/07/2009 3:20:37 PM

    Obama states that he is a student of history. Maybe he is patterning his work as President after Nero. Remember Nero did not understand his people or his current situation. He partied while the Roman Empire declined. Legend has it that Nero fiddled while Rome burned. As he attempts to become a part of the jet set of our country the Government's credit card is getting maxed out! If we were in a time of prosperity it would be ok but now is not the time for him doing an impersonation of Nero!

  • Posted By: grantha @ 04/15/2009 11:30:48 AM

    instead of being a pessimist and saying what everyone is doing wrong, why not team up and try to work together. Everyone running this country is so selfish and all they want to do is say "NO. my way is better. wwwwaaaaaaaahhhhhhh." dont be a little bitch Krugman. Try teaming up with Obama!

  • Posted By: joey d. @ 04/13/2009 12:44:55 PM

    the goverment should stay out of private cpany business and let the market fix itself - the president according to the constition is commander in chief NOT money lender NOT ceo of a car company - these companies should go bankrupt under chapter 13 restructure and hopefully come ot better equiped to deal with the competion and the unions should give in alittle like the foriegn car makers here in this country - also if the government would drop the corporate tax from 35% down to 17-18% it would put the US in a more competitive world market ( 35% is the second highest corporate tax in the world ) no wonder alot o business are going over seas - wake-up US government - talk about greed - here is a democratic president and congress just taking what they want - THATS GREED!!

  • Posted By: RagnarD @ 04/13/2009 11:51:46 AM

    Krugman has a problem with Obama's policies because he is a socialist and the administration is following the same fascist plan as the previous administration.

    Where is the Newsweek interview with Tom Woods, Lew Rockwell, Walter Block or Peter Schiff. Economists who called the financial crisis years before it happened, unlike Krugman.

    Why are you still pounding the dead horse of socialist ideas. There is no philosophical difference between socialism and fascism. There is only a difference of opinion as to which policies will bring about the intended despotism faster. This is supposed to be the land of the free, not the land of central planning and nationalized slavery.

    I invite anyone who wants socialism to move to Cuba. And Take Krugman with you

  • Posted By: Dr Wu @ 04/12/2009 12:13:53 PM

    Krugmam is Jesus; Cheney is the devil --they both fight for the soul of this country. Then there are the Pirates (Where's Terry when you need him?).

    So many plagues,so little time...

  • Posted By: adolfimktg @ 04/05/2009 5:45:12 PM

    I don't know if the writers used or misused the word "bemused" but one thing it does not mean is amused. It means baffled: perplexed by many conflicting situations or statements; filled with bewilderment; "obviously bemused by his questions"; "bewildered and confused"; "a cloudy and confounded philosopher. I'm surprised the editors missed this but then it is often misused. I was tempted to write that I was bemused by your use of the word bemused. Looks like I gave in to temptation. tadolfi@marketingcomm.net

  • Posted By: bojack27 @ 04/03/2009 1:36:12 PM

    Former Vice President Dick Cheney speaks on CNN Sunday.

    WASHINGTON ??? Former Vice President Dick Cheney says don't blame George Bush for leaving President Obama with an economic catastrophe.

    It was everyone else, and the Democrats, who brought on disaster, said Cheney, who was one of Bush's most influential advisers over his eight years leading the country.

    "There's no question that what the economic circumstances that [Obama] inherited are difficult ones," Cheney said on CNN this morning. "I don't think you can blame the Bush administration for the creation of those circumstances."

    Instead, Cheney suggested the current problems stem for the worsening world economy and Democratic obstruction of Bush's attempts at reforming the government-backed mortgage giants, Fannie Mae and Freddie.

    "This isn't something that happened just in the Bush administration or just in the United States," Cheney said. "We are in the midst of a worldwide economic period of considerable difficulty here.

    "It's important to understand that. It doesn't do just to go back and say, well, 'George Bush was president and that is why everything is screwed up,' because that is simply not true," Cheney said.

    He insisted that his White House wanted to act on the mortgage front in the U.S.

    "We had, in fact, tried to deal with the Fannie Mae and Freddie Mac problem some years before with major reforms and were blocked by Democrats on the Hill, Barney Frank and Chris Dodd," Cheney said.

    "The Democrats absolutely opposed any effort to reform those two institutions, and I think the collapse of those two institutions, as much as anything, contributed to the financial difficulties we've been living with since," he added.

    Democrats scoffed at Cheney, noting that Republicans were in charge of the Congress and the White House for seven of Bush's eight years, and couldn't block much of anything.

    "I guess the only thing left for Dick Cheney to torture is the truth," said Frank spokesman Steve Adamske. "The only time President Bush signed a bill that regulated Fannie and Freddie, it was authored by Barney Frank and Chris Dodd."

    "Dick Cheney may have left his sense of accountability back home in his undisclosed location," added DNC spokesman Damien LaVera, accusing Cheney of lobbing partisan bombs while the current President is trying to fix problems.

    • Posted By: bojack27 @ 04/03/2009 1:37:18 PM

      But Cheney also suggested there's not much point playing the blame game now that he is out of office.

      "I think the notion that you can just sort of throw it off on the prior administration, that's interesting rhetoric but I don't think anybody really cares a lot about that," Cheney said.

      Many analysts point to all the bad loans that Fannie and Freddie backed as the start of the collapse. But many also blame Republicans in Congress for relaxing regulations that allowed most of the financial world to jump into the mortgage market.

      In a separate interview, President Bush last spokesperson, Dana Perino, admitted it was not "secret" that Bush deserved some of the blame for the market meltdown. But she also said he deserved some credit for the uptick in the market last week.

      "Can all the credit go specifically to President Obama? Well, I would say no," Perino said on C-SPAN's Washingotn Journal, pointing to the early step Bush's White House took in the crisis.

      • Posted By: bojack27 @ 04/03/2009 1:51:56 PM

        I found some serious flaws in this article. (1) President Bush did try to do something with Fannie and Freddie at least 17 times during his administration. (2) Democrats think that they have a pass to do anything they want if they blame Bush for everything. Not taking responsibility for their own actions themselves. (3) Most people haven't got a clue as in who cause this problem and they have bought the lie that it is all republicans fault.

        • Posted By: 40YearR @ 04/03/2009 2:11:19 PM

          There's a serious flaw in this post of yours, bojack. Mortgages aren't the main problem. The aggregate of problem mortgages is dwarfed by the main problem. You don't even know what the main problem is.

          • Posted By: bojack27 @ 04/03/2009 3:19:01 PM

            40 are you talking about my comment on the post or the main post?

            I forgot to put up the link to the article. It is from the daily news. check it out below.

            http://www.nydailynews.com/news/politics/2009/03/15/2009-03-15_exvp_dick_cheney_dont_blame_bush_adminis.html

            • Posted By: 40YearR @ 04/03/2009 3:28:56 PM

              What is unclear about my post, bojack?

              So, you're still going for that redherring, and still don't know what the bigger problem is, bojack?

              (Please excuse me that I *** behind my hand over Cheney being cited as a source for anything, ok?)

              • Posted By: bojack27 @ 04/03/2009 3:58:22 PM

                Giving you the benefit of the doubt 40. It seems that you don't want to debate but just attack me to boost your own EGO. Well we can start another round if you like but I did tell PIA I owuld change the subject and not respond to negative attacks.

                If your not here to debate then don't respond. Always making accusations on what i know and don't know doesn't show anyone what you know. So if you are here to debate then tell me what you think is the main problem. Don't be shocked if I disagree with you, this is why we blog.

                Waiting your response.

                • Posted By: 40YearR @ 04/03/2009 4:31:53 PM

                  Dick Cheney knows what the main problem is. He just wants to divert attention away from in; a very successful aspect of the ongoing propaganda campaign.

                  The main problem is Credit Default Swaps that became possible only because the Gramm-Leach-Bliley Act (drafted and sponsored by Phil Gramm) eliminated the regulation that previously existed. CDSs increased from $20T in 2000 to $545T 2006. These bogus unregulated securities are the problem of AIG (not mortgages) and they are so big that the original plan of using TARP funds to buy bad mortgages could not be done; buying bad mortgages would have done nothing to shore up the financial institutions because the main problem is CDSs.

                  • Posted By: bojack27 @ 04/05/2009 2:57:22 PM

                    Sorry it took so long to get back to this article.

                    The Commodity Futures Modernization Act of 2000 did more damage than the Gramm-Leach-Bliley Act could ever do. The Gramm-Leach-Bliley Act (GLBA) allowed commercial and investment banks to consolidate. This in itself didn???t contribute to the financial downfall but expedited the fall. The Commodity Futures Modernization Act of 2000 did deregulate the banking institutions. Either way it was introduced by a republican or a republican lead house a senate.

                    The Commodity Futures Modernization Act of 2000 or CFMA (H.R. 5660 and S.3283) is United States federal legislation which repealed the Shad-Johnson jurisdictional accord, which had banned single-stock futures in 1982. The legislation also provided certainty that products offered by banking institutions would not be regulated as futures contracts.
                    This act was incorporated by reference into H.R. 4577, an omnibus spending bill. It was passed by the 106th United States Congress and signed by President Bill Clinton on December 21, 2000; the legislation thus became law as a part of H.R. 4577 - Public Law 106???554, §1(a)(5).

                    The act has been cited as a public-policy decision significantly contributing to Enron's bankruptcy in 2001 and the much broader liquidity crisis of September 2008 that led to the bankruptcy filing of Lehman Brothers and emergency Federal Reserve Bank loans to American International Group[1] and to the creation of the U.S. Emergency Economic Stabilization fund.

                    Checkout this article or video.

                    http://www.cbsnews.com/stories/2008/10/26/60minutes/main4546199.shtml

                    http://www.cbsnews.com/video/watch/?id=4546583n

            • Posted By: 40YearR @ 04/03/2009 3:23:49 PM

        • Posted By: 40YearR @ 04/03/2009 2:12:31 PM

        • Posted By: 40YearR @ 04/03/2009 2:08:07 PM

    • Posted By: bojack27 @ 04/03/2009 1:36:53 PM

      But Cheney also suggested there's not much point playing the blame game now that he is out of office.

      "I think the notion that you can just sort of throw it off on the prior administration, that's interesting rhetoric but I don't think anybody really cares a lot about that," Cheney said.

      Many analysts point to all the bad loans that Fannie and Freddie backed as the start of the collapse. But many also blame Republicans in Congress for relaxing regulations that allowed most of the financial world to jump into the mortgage market.

      In a separate interview, President Bush last spokesperson, Dana Perino, admitted it was not "secret" that Bush deserved some of the blame for the market meltdown. But she also said he deserved some credit for the uptick in the market last week.

      "Can all the credit go specifically to President Obama? Well, I would say no," Perino said on C-SPAN's Washingotn Journal, pointing to the early step Bush's White House took in the crisis.

      • Posted By: 40YearR @ 04/03/2009 3:47:48 PM

        HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA!!!!!!!!!!!!!

        LMAO!!!!!!!!

        Dick Cheney "says"!!!!!!!!!!!

        HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA!!!!!!!!!!

        It took 7 years, but even dumbell Dubya wouldn't even listen to Cheney on Scooter Libby!!!!!!!

        HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA!!!!!!

  • Posted By: RBSHEA @ 04/05/2009 8:01:02 AM

    A waste of column space. Thomas should write show biz stories. That's all this amounts to.

  • Posted By: richsob @ 04/04/2009 2:43:24 PM

    The most salient point of the article is that Krugman can afford to take a flier and be wrong while Obama has no such luxury.

  • Posted By: SheShine-y @ 04/04/2009 10:14:37 AM

    Having worked in and around government for many years, I have seen how the government has screwed up the deliverables in such separate areas as IT and Education. I???m not going into details because we all have our own eye-witness accounts.
    I???m not an economist nor anything near that, but why couldn???t the scenario work that says: just take the 40 million people over 50 in the work force - Pay them $1 million apiece severance with the following stipulations:
    1. They retire immediately. Forty million job openings - Unemployment fixed.
    2. They buy NEW American cars. Forty million cars ordered - Auto Industry fixed.
    3. They either buy a house or pay off their mortgage - Housing Crisis fixed.
    It can't get any easier than that! I think we are just making the solutions way too difficult and costly.
    I know this is redistribution of wealth, but that???s happening anyways through the bailouts and pork spending. At least this is much less expensive and we don???t have to enslave future generations of our children to the foreign creditors.
    After we follow the above scenario, then let???s all institute the FAIR TAX.
    Both Congress and the IRS have conquered ???we the people??? through the Power of Taxation. They grow more wealthy and powerful while the little man shrinks. It???s a system that breeds corruption and graft.

  • Posted By: jnanagardener @ 04/04/2009 9:45:35 AM

    I admittedly stopped reading after you (Evan Thomas) stated that you were part of the "establishment". I suspect that many people will get hung up on that word and may have already formed judgments after only reading these first two sentences! I'm not sure what the "establishment" means, but you claim it is part of "proppoing up the existing order". Fine, I see how you define it. What I don't understand is why you feel the need to be anything other than an objective, unbiased journailst! If there is a journalistic "establishment", then isn't part of it - or at least shouldn't it be - about serious inquiry, scrutiny, and questioning? Your acceptance of an "established order", as you write about a man (Paul Krugman) who seems to be criticizing it, doesn't hold out much hope that your article is anything but a form of propaganda!

    Have we arrived at a point in our civilization where propaganda can pass as journalism? And what might it suggest if this kind of "reporting" - even if it is an editorial - becomes the norm in a democracy!?

    After most in the media "blew it" in the build up to Iraq, many hoped that a more diligent media would emerge, one that followed a mantra of simply following a story wherever it leads.

    Perhaps the greatest irony of the whole story about Paul Krugman is, well the fact that you are criticizing a man who embodies the very symptoms of the problem you are perpetuating. Krugman - regardless of his credentials - has become a media pundit. Media pundits have taken the place of journalists doing the hard work of seeking out the roots of a story. And a story as big as this has many roots.

    Regardless of one's political views or core philosophies, people should be angry and outraged about this financial meltdown. They should be equally outraged that you, Evan Thomas, are comfortable enough in your "establishment posture", not to appreciate that outrage, much less notice it.

  • Posted By: Dogmeat NYC @ 04/04/2009 5:00:03 AM

    Tennessee Power Authority
    Interstate highways
    nasa

  • Posted By: centraloregon @ 04/04/2009 1:21:08 AM

    Don't be afraid to read Peter Schiff...
    "Nationalizing" anything doesn't work.
    What has the government ran successfully since WWII?
    nothing.
    why do you expect them to start now?

  • Posted By: Nevadastu @ 04/03/2009 10:50:05 PM

    The infatuation factor is such that the adoring multitudes refuse to accept the fact that their messiah is bad news. This guy's agenda is to re-make America in his image, sort of like Chavez and Venezuela.

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