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"The U.S. government and the Federal Reserve have spent, lent or committed $12.8 trillion, an amount that approaches the value of everything produced in the country last year."
“The comparison to GDP serves the useful purpose of underscoring how extraordinary the efforts have been to stabilize the credit markets,” said Dana Johnson, chief economist for Comerica Bank in Dallas.
“Everything the Fed, the FDIC and the Treasury do doesn’t always work out right but back in October we came within an eyelash of having a truly horrible collapse of our financial system, said Johnson, a former Fed senior economist. “They used their creativity to help the worst-case scenario from unfolding and I’m awfully glad they did it.”
“The comparison to GDP serves the useful purpose of underscoring how extraordinary the efforts have been to stabilize the credit markets,” said Dana Johnson, chief economist for Comerica Bank in Dallas.
“Everything the Fed, the FDIC and the Treasury do doesn’t always work out right but back in October we came within an eyelash of having a truly horrible collapse of our financial system, said Johnson, a former Fed senior economist. “They used their creativity to help the worst-case scenario from unfolding and I’m awfully glad they did it.”
Well, if a Fed "economist" said it was good, that's good enough for me
Just nonsensical fearmongering to say we teetered on economic collapse. Unless they let the markets self-correct, they'd never really know. If the economy collapses anyway, it'll be far worse in a hyperinflationary environment. A huge gamble among our "esteemed" leaders.
Well, if a Fed "economist" said it was good, that's good enough for me
No it was not a Fed economict. Read again.
If you believed Bush last year when he said the economy is fundamentally solid, then how do you explain his bail-out and nationalization spree late last year? Why did he do it if there were no problems?
Another minor point is that those loans, guarantees and moneys paid are amortized over the course of several years. It doesn't make the sum total any less daunting but it places the conservation within its proper perspective.
If you believed Bush last year when he said the economy is fundamentally solid, then how do you explain his bail-out and nationalization spree late last year? Why did he do it if there were no problems?
It was solid until Bush's banking buddies caught wind that the gov might hand out free dollar bills on the corner. Then it was Katie bar the doors rush to "economic catastrophe."
Well, if a Fed "economist" said it was good, that's good enough for me
Just nonsensical fearmongering to say we teetered on economic collapse. Unless they let the markets self-correct, they'd never really know. If the economy collapses anyway, it'll be far worse in a hyperinflationary environment. A huge gamble among our "esteemed" leaders.
Nonsensical fearmongering is written all over this thread, starting with its title, served with half truths.
Sure, increasing deficits doesn't serve us well, but it is better than staying on the sidelines, while telling... I'm the government, I know we never do anything right so we will stay out of this, and let things take shape as they may...
We shouldn't have gotten to this place to begin with, spent like drunk sailors when we shouldn't have instead of preparing for this day, and now deficits are bad?
If you believed Bush last year when he said the economy is fundamentally solid, then how do you explain his bail-out and nationalization spree late last year? Why did he do it if there were no problems?
It was solid until Bush's banking buddies caught wind that the gov might hand out free dollar bills on the corner. Then it was Katie bar the doors rush to "economic catastrophe."
Shoulda let them fail.
Yes, they should have let them fail.
Principles mean something only if you stand by them at tough times. It appreas the current day Republicans are capitalists on the way up, and socialists on the way down. Principles are preached only during good times and ignored during bad.
The approach is identical. I call it Bush-Obama policy.
They are both hoping to recoup the money later, but only time will tell.
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