We are Japan

[FUCK THE POLICE]

http://krugman.blogs.nytimes.com/2009/03/31/geithner-san/

Geithner-san

Adam Posen, who really really knows what went down during Japan’s lost decade, says:

What the Obama team is proposing is disconcertingly similar to the actions of Japanese Prime Ministers Hashimoti, Obuchi, and Mori in 1995 and 1998: Rather than ask the legislature for straightforward recapitalization money, you have the political leadership preferring to risk overpaying current owners of toxic assets rather than forcing sales. For all of Japan’s supposed intervention in markets, its government still lacked the stomach for taking over banks, let alone closing them.

To be fair: the Obama team really does face huge political obstacles in doing the right thing. Maybe it really can’t be done; as Rahm Emanuel said about me, “[unprintable].”

But we shouldn’t kid ourselves. Japan is us.