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How can one not be worried?


inside-the-obama-white-house-ngepress.comThe Washington Spring — 7 —

Everything I’ve read in recent weeks, and everything I’ve heard from my friends who work in banking, points the same way: we have returned to the same practices, the same follies and abuses that led to the current crisis. Companies are distributing the same extravagant bonuses and making the same absurd deals, and they’re doing it with the same greed, the same contempt for the public good and the same indecent attitude to money as before.

One can’t help but wonder, with Paul Krugman, whether the new American administration — who is supposed to set the tone – hasn’t failed to deliver the right message. Dealers were wary for a while, watching to see if they could resume their business practices as before. It seems they are now confident that nothing is going to change, and that they can carry on with impunity. They are confident because all the same faces are playing the game — on Wall Street, in the Senate and in the administration — and no one seems to want, or to be able, to put a stop to it.

In a sense, it’s understandable. America’s corporate giants wield enormous influence, and it’s quite understandable why no administration can ignore them. And I understand, too, how tremendously difficult it is for one politician, even if he is President of the United States, to antagonise Wall Street and risk breaking the cogs of the world’s leading economic power.

But understanding all this doesn’t put my mind at rest; rather, it makes me even more apprehensive. I understand Obama’s dilemma; but I am only more worried about his chance of success for it1.

I’ve said it before and I say it again — he must succeed. He must succeed on domestic issues such as reform of the banking sector and health insurance. And he must succeed in foreign affairs, especially in the Middle East, where it is critical that he bring peace to the Palestinians and Israelis and, more broadly, to the relationship between the West and the Muslim world, which is in danger of being swept away in the deadly reaches of Afghanistan, Pakistan and elsewhere. And then, of course, he must succeed in halting – or, at least, in significantly slowing – global warming.

I know it is very early days, still much too early to start talking about being disappointed. But it isn’t too early to articulate a few misgivings — about a certain lack of vision on some issues; and, on some other issues, a certain lack of determination.

(First published in French on August 7th).

  1. For those who want to deepen their understanding of the matter, I recommend the long article by the economist James K. Galbraith entitled ‘No Return to Normal’; his argument, well researched and brilliantly expounded as it is, is particularly worrying. []

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