Over a brown-bag lunch at Harvard’s Joan Shorenstein Center on the Press, Politics and Public Policy, New York Times Business  Columnist Joe Nocera opened his talk on the daunting question, “The Economy: Where Are We Headed?” with a resounding:  “I don’t know.”

He  offered background on the current (and future, he predicts) financial crisis, focusing first on the  housing foreclosure  crisis, and then on the banking industry.

Regarding housing, he suggested that– unfair as it may seem to people who didn’t buy into risky mortgages they couldn’t afford–we as an nation should bite the bullet and find ways to help those who did hold onto their homes.  One suggestion:  rather than  kick people out of foreclosed  homes, banks could rent them to the forfeiters  with an option to buy them back in five years with a 10 per cent down payment.

Regarding banking, Nocera said he sees no reason why “shareholder value” should remain the cornerstone  of banking industry strategy.  He  feels little sympathy for those who bet that they’d win big profits–up to 25 per cent–but lost, he said.

In Nocera’s view, Washington currently seems paralyzed by indecision over how to proceed.

One option  is the “bad bank,” in which the government buys all of the bad assets but that option has stalled because no one knows what the assets are worth.

Another is an  “RTC”  strategy like that used during the Savings and Loan Crisis of the  1980s,  in which the government formed the Resolution Trust Corporation to take over  banks. The RTC  allowed some to fold, and sold others, without the assets to new owners. The RTC  then gradually sold aoff the assets, with riders assuring that if the new owners made money, the government would receive a portion of the profits.  The process took ten years, Nocera said, but it worked.

While  President Obama  is confident about his ability to make decisions on many topics, the economy isn’t one of them, Nocera said.   Obama  chose  Bush holdover Tim Geitner as Treasury Secretary over former Harvard President Larry Summers mainly for personality reasons, but, Nocera predicted, Geitner is not likely to be able to move away from the thinking of the previous administration in order to come up with much needed  new options.

Nocera commented  wryly that his  blog, the Executive Suite,  has served as a clearning house for ideas on how to solve both the economic crisis–none of which appear to have been taken up by either administration.

Nocera’s latest post as of this writing is entitled” Bankers Gone Bonkers.”  It appeared on January 30, 2009 at http://executivesuite.blogs.nytimes.com/.

AMH

New Cambridge Observer is a publication of the Harris Communications Group of Cambridge, MA.

Watching the Obama inauguration ceremonies on TV, I felt disappointed by poet Elizabeth Alexander’s “Praise Song for the Day”…but  agree with Martha Swartz of  Philadelphia, who points out in her email newsletter that that the poem works better read than heard.  It’s included below.

Martha, a lawyer who regularly sends out political commentary,  also offers links to photos of the inauguration: http://www.boston.com/bigpicture/2009/01/the_inauguration_of_president.html.

Inauguration photos by Wilmington, DE photographer Kathe Kahn Morse are posted at http://gallery.me.com/kathemorse#100008 .\

If you’d like me to link to your photos, commentary or anything else regarding the inauguration…or actually…anything else at all…please leave a comment to let me know!

Anita

Here’s the poem:
PRAISE SONG FOR THE DAY
by Elizabeth Alexander

Each day we go about our business, walking past each other, catching each others’ eyes or not, about to speak or speaking. All about us is noise. All about us is noise and bramble, thorn and din, each one of our ancestors on our tongues. Someone is stitching up a hem, darning a hole in a uniform, patching a tire, repairing the things in need of repair. Someone is trying to make music somewhere with a pair of wooden spoons on an oil drum with cello, boom box, harmonica, voice. A woman and her son wait for the bus. A farmer considers the changing sky; A teacher says, “Take out your pencils. Begin.” We encounter each other in words, words spiny or smooth, whispered or declaimed; words to consider, reconsider. We cross dirt roads and highways that mark the will of someone and then others who said, “I need to see what’s on the other side; I know there’s something better down the road.” We need to find a place where we are safe; We walk into that which we cannot yet see. Say it plain, that many have died for this day. Sing the names of the dead who brought us here, who laid the train tracks, raised the bridges, picked the cotton and the lettuce, built brick by brick the glittering edifices they would then keep clean and work inside of. Praise song for struggle; praise song for the day. Praise song for every hand-lettered sign; The figuring it out at kitchen tables. Some live by “Love thy neighbor as thy self.” Others by first do no harm, or take no more than you need. What if the mightiest word is love, love beyond marital, filial, national. Love that casts a widening pool of light. Love with no need to preempt grievance. In today’s sharp sparkle, this winter air, anything can be made, any sentence begun. On the brink, on the brim, on the cusp — praise song for walking forward in that light.

New Cambridge Observer is a publication of the Harris Communications Group of Cambridge, MA.

I’d expected dancing in the streets in the People’s Republic but perhaps because of deep snow and freezing cold, instead found a friendly breakfast gathering at Upstairs on the Square (photos and video to follow, if people send them to me).

Watched Obama’s eloquent speech with Harvard students at Quincy House–most listened with rapt attention, even standing for the national anthem, hands over hearts.

I was most impressed with Obama’s suggestion to those who blame the West for the state of their own nations that populations care about what governments can build, not what they can destroy–and distressed when, after the address, viewed enthusiastically by millions, the stock market took a 300 point drop.

In the evening, went back to Upstairs for drinks with Mark Hoffman, of Burlington, and Marc Kessler, of Cambridge, whose photo (above) I took with a larger-than-life cardboard Obama cutout.

We were sorry to miss free skating and hot chocolate at the Charles Hotel, readings of various inaugural addresses at the American Repertory’s Arrow Street Theater, the Harvard Bookstore’s “winedown,” and numerous house parties but, unlike the Obamas, who attended ten inaugural balls, we couldn’t be everywhere!

The New Cambridge Observer is a publication of the Harris Communications Group of Cambridge, MA.