The markets gyrate, he says, up and down, like a political poll. And so he does not pay attention. He keeps his eye on the “long run”.
I guess none of that roomful of economists who now advise him (Summers, Volker, Geithner, et al) explained what Keynes had to say about this: in the long run we are all dead.
Oh, and by the way, gyrating presumes it moves in both directions – yet the market is now 50% off its high point last year. This is not gyration this is collapse.
Good lord, does he not understand that the entire working population of America as well as its retirees depends on that gyrating stock market for its income now?
This is the result of several decades of bipartisan policy and he has himself wanted to increase dependence on that market with proposals to expand IRA coverage instead of a guaranteed retirement for hard working Americans. So he cannot escape the markets.
Instead he dithers, delays and now obfuscates. The time to move is now and the moves must be substantial.
1) Fire Little Tim. Geithner is in way over his head. He is in there because he is a mentee of Larry Summers and buddies with the Wall Street crowd. He has to go. Replace him with Harold Ford, who today on Chris Mathews at least showed he understands that something has to be done.
2) Fire Mary Schapiro at SEC. Schapiro and her self regulating ilk are largely to blame for the Madoff and Stanford frauds. Big banks knew these people were crooks but they did not report them to Schapiro at FINRA or NASD. She can’t be trusted to knock heads at the SEC. Replace her with US Attorney Patrick Fitzgerald. He always gets his man.
3) Nationalize the Big Banks. NOW. Fire their executives, replace the boards of directors. Restructure them into Public Trust Companies managed by boards that are made up of representatives of all the key stakeholders: investors, employees, communities, etc. Each of the new five (?) PTC banks should specialize in lending in a particular area, on a low leverage basis, such as industrial, high tech, biotech, services.
4) Take over the Auto Industry, Including the Asian and German transplants. NOW. Do the same with them as with the banks, reorganize them into PTC’s managed by their stakeholders.