Worrisome

Dr. Krugman:

[A]mong people I talk to there’s a growing sense of frustration, even panic, over Mr. Obama’s failure to match his words with deeds. The reality is that when it comes to dealing with the banks, the Obama administration is dithering. Policy is stuck in a holding pattern.

[...]

...officials still aren’t willing to face the facts. They don’t want to face up to the dire state of major financial institutions because it’s very hard to rescue an essentially insolvent bank without, at least temporarily, taking it over. And temporary nationalization is still, apparently, considered unthinkable.

But this refusal to face the facts means, in practice, an absence of action. And I share the president’s fears: inaction could result in an economy that sputters along, not for months or years, but for a decade or more.

Dr. Roubini:

The global recession may continue until the end of 2010 as the response by governments to rectify it is “too little, too late,” said Nouriel Roubini, the New York University professor who predicted the financial crisis.

Dr. Black:

This is all going to end really badly.

If Obama doesn't twig to the fact that Geithner and Summers are the problem then there will be no choice but to conclude that the President himself is the problem.

(And to make matters worse, for all the talk coming from Obama about the importance of rescuing the economy key positions at Treasury are still vacant.)

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