Robert Kuttner and Michael Hudson On The Obama Administration's $789 Billion Economic Stimulus Package and $2.5 Bank Recovery

Most Republican lawmakers have opposed the stimulus. The partisan divide extended to the White House Thursday, when Senator Judd Gregg of New Hampshire withdrew his nomination as Commerce Secretary. The Republican Gregg cited what he called “irresolvable conflicts” with the economic stimulus plan.

Gregg is Obama’s second Commerce pick to withdraw from nomination, following New Mexico Governor Bill Richardson. Meanwhile, more federal aid for the nation’s banking system is likely on the horizon. In a new report, New York University economist Nouriel Roubini estimates financial firms stand to lose up to $3.6 trillion dollars on troubled loans and devalued assets. Echoing other economists, Roubini concludes the U.S. banking system is “effectively insolvent."

Michael Hudson, distinguished Research Professor at University of Missouri, Kansas City. A former Wall Street economist, he is the author of many books, including “Super Imperialism: The Economic Strategy of American Empire.” His latest article, “Obama’s Awful Financial Recovery Plan”, is online at counterpunch.org

Robert Kuttner, Journalist and economist. He is the cofounder and coeditor of The American Prospect magazine, as well as a Distinguished Senior Fellow of the think tank Demos. His latest book is called “Obama’s Challenge: America’s Economic Crisis and the Power of a Transformative Presidency.”