QUOTE OF THE DAY….From Tim Geithner, at his confirmation hearings today:
The tragic history of financial crises is a history of failures by governments to act with the speed and force commensurate with the severity of the crisis. If our policy response is tentative and incrementalist…then we risk greater damage to living standards, to the economy’s productive potential, and to the fabric of our financial system….In a crisis of this magnitude, the most prudent course is the most forceful course.
Nationalization fans should rejoice at hearing this. More and more, that includes me, by the way. The news out of Britain is beyond grim right now, and throughout this financial crisis the U.S. has never been more than a couple of months behind the UK. If that stays the case, nationalization of at least a couple of big banks will hardly even be a debatable option a few weeks from now.