“The biggest mistake Obama could make, is thinking this problem is smaller than it is"

[roseBudd]

“A great judgment has to be made now as to just how big and bad the situation is,” says Jeffrey Garten, the Yale School of Management professor of international finance. “This is a crucial judgment. Do we think that a couple of hundred billion more and couple of bad quarters will take care of this problem, or do we think that despite everything that we have done so far — despite the $700 billion fund to rescue banks, the lowering of interest rates and the way the Fed has stepped in directly to shore up certain markets — the bottom is nowhere in sight and we are staring at a deep hole that the entire world could fall into?”

If it’s the latter, then we need a huge catalyst of confidence and capital to turn this thing around. Only the new president and his team, synchronizing with the world’s other big economies, can provide it.

“The biggest mistake Obama could make,” added Garten, “is thinking this problem is smaller than it is. On the other hand, there is far less danger in overestimating what will be necessary to solve it.”

http://www.nytimes.com/2008/11/23/opinion/23friedman.html?ref=opinion

Obama and his team are going to have to be making decisions daily.

All I can do is hope they ate the right ones.

I have neither the knowledge or the expertise to weigh in on whether he is right or wrong.

[Amerigo Vespucci]

1. He's already rejected the Bush method, which is to pretend that the problem doesn't exist

Seriously...how many times during the ramp-up to the current mess did we have to hear Commander Cokespoon give yet another stump speech on how the economy was "strong, and gettin' STRONGER?"

It's great that a Yale School of Management professor doesn't want Obama to screw up. I'm sure that Mr. Garten's unsolicited armchair quarterbacking will be greatly appreciated by all.

[AllentownJake]

2. Right now you have bad decisions or terrible decisions

There are few good decisions. We are in a situation where no matter what we do the unintended consequences are great. However, I have hope and a little confidence Obama makes the decisions that can get us out of this and the ability to dig ourselves out.

This isn't going to take place overnight and things are going to get worse before they get better.

[jody]

3. IMO biggest mistake is assuming anyone knows how to use government to solve our economic problems.

Lowering or raising taxes hasn't worked. :shrug:

Borrowing money from foreign governments to subsidize corporations or consumers hasn't worked. :shrug:

The only thing not being actively considered is drastically reducing government spending and consumers learning to live with fewer luxuries.

Our economy is irreversibly linked to that of other nations and we can no longer treat them as our economic slaves.

By the 22nd century, China and India will dominate the world's economy and Japan will be a docile ally to that Far East juggernaut.

Russia with its unexplored regions could have unparalleled critical resources needed for industry and the Far East is positioned to be its biggest customer.

We Americans need to go on a diet in more ways than just reducing our average weight.

[Orsino]

4. Yes, the economy will be a moving target for the foreseeable future.

Obama's team will need to react quickly. Congress is more deliberative, but they will have to work five days a week.