OBAMA RESPONDS TO THE LEFT

If you didn't see Obama's speech on the economy today, you really should. If interested, you can see it here. Anyway, I thought it worth mentioning the defense of his economic plan from some on the Left like Paul Krugman. Here's part of it ...

On the other hand, there have been some who don't dispute that we need to shore up the banking system, but suggest that we have been too timid in how we go about it. They say that the federal government should have already preemptively stepped in and taken over major financial institutions the way that the FDIC currently intervenes in smaller banks, and that our failure to do so is yet another example of Washington coddling Wall Street. So let me be clear - the reason we have not taken this step has nothing to do with any ideological or political judgment we've made about government involvement in banks, and it's certainly not because of any concern we have for the management and shareholders whose actions have helped cause this mess.

Rather, it is because we believe that preemptive government takeovers are likely to end up costing taxpayers even more in the end, and because it is more likely to undermine than to create confidence. Governments should practice the same principle as doctors: first do no harm. So rest assured - we will do whatever is necessary to get credit flowing again, but we will do so in ways that minimize risks to taxpayers and to the broader economy. To that end, in addition to the program to provide capital to the banks, we have launched a plan that will pair government resources with private investment in order to clear away the old loans and securities - the so-called toxic assets - that are also preventing our banks from lending money.

So, I don't know if Obama is right or not about this stuff, but he sure sounds like he knows what he's talking about when you listen to the speech. He's a very impressive man.