More economic Gothic language, this time from Paul Krugman:
Gotham is a zombie bank: it’s still operating, but the reality is that it has already gone bust...
[M]any influential people, including Federal Reserve officials, bank regulators, and, possibly, members of the incoming Obama administration, have become devotees of a new kind of voodoo: the belief that by performing elaborate financial rituals we can keep dead banks walking.
Krugman even adds a zombie bank antecedent, along with an innovative way to kill the shambling dead:
A better approach would be to do what the government did with zombie savings and loans at the end of the 1980s: it seized the defunct banks, cleaning out the shareholders.
He wants us to avoid another zombie defense tactic:
Hence the popularity of the new voodoo, which claims, as I said, that elaborate financial rituals can reanimate dead banks.
It's interesting to see rhetoric usually assigned to a marginal cultural position - pop horror - coming from an elite source (Princeton academic, writing for the New York Times).
Previous zombie bank posts: back in October.
We should make small investments in small scale industries and not bank too much. If a bank goes bust then we are left penniless too.
Real estate is a better option.
Raj
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Posted by: raj elyas | January 31, 2009 at 05:06