Krugman in 'Despair' Over Toxic Asset Plan

New book says Obama's team routinely undermined him

(NEWSER) - In March 2009, in the throes of the financial crisis, Barack Obama told Tim Geithner to focus on a proposal to dissolve Citigroup—but the Treasury Secretary ignored him and never developed a plan, according to former Wall Street Journal reporter Ron Suskind’s new book Confidence Men. In the book, which was obtained early by the AP and the New York Times , Suskind writes that Obama’s “authority was being systematically undermined or hedged by his seasoned advisers.” More»

Pundits from left and right generally praise address

(NEWSER) - Pundits handed out good grades aplenty for President Obama's new jobs proposal last night, with generally positive feedback from liberals like Paul Krugman—but also from conservatives like David Frum and Andrew Sullivan.

• Krugman writes in the New York Times that he was "favorably surprised by the new Obama jobs plan, which is significantly bolder and better than I expected." Still, "it's not nearly as bold as the plan I’d want in an ideal world. But if it actually became law, it would probably make a significant dent in unemployment." Of course, Krugman holds out little hope that the GOP will let it pass.

But today's the absolute last one—right?

(NEWSER) - Today is, supposedly, the absolute last day for debt limit legislation to be introduced in the House if the US wants to avoid defaulting on Aug. 2. As we wait to see if lawmakers make the deadline, Uri Friedman, writing in in the Atlantic Wire, looks at all the deadlines they've missed so far:

1. May 16: Timothy Geithner originally named this as the date the US would risk default, but when it passed without Congress raising the debt ceiling, the Treasury shuffled some clamshells to postpone the default date to Aug. 2—at which point "the borrowing authority of the United States will be exhausted."
2. June 31: On June 1, John Boehner said that a deal must be made in the next month in order to avoid "rattling investors."

Not only is Obama caving to the GOP—he's 'celebrating' it, writes Paul Krugman

(NEWSER) - Barack Obama has left the building. Granted, with Republicans running amok, all Obama really has is “the bully pulpit,” but incredibly, “he’s using it to reinforce his enemies’ narrative,” writes Paul Krugman in the New York Times . Maybe he did have to make big concessions to avoid a government shutdown, but did he “have to celebrate his defeat,” applauding it as “the largest annual spending cut in our history”? Looking back at 2008, one has to wonder: “Who is this bland, timid guy who doesn’t seem to stand for anything in particular?” More»

Only you could have saved us from financial meltdown: Warren Buffett

(NEWSER) - Sure, it's all the rage to curse big government, government spending, government in general, but there's one guy who's thankful for it—and his name happens to be Warren Buffett. Writing a thank-you letter disguised as an op-ed for the New York Times, Buffett praises Uncle Sam's intervention in the financial crisis: As America's financial pillars stood ready to fall like dominoes two years ago, "Only one counterforce was available, and that was you, Uncle Sam. Yes, you are often clumsy, even inept. But when businesses and people worldwide race to get liquid, you are the only party with the resources to take the other side of the transaction." More»