Two leading economists “wielding complex quantitative models” say they have proven that the federal government’s “sweeping interventions to prop up the economy since 2008 helped avert a second Depression.”

In a new paper, they “argue that without the Wall Street bailout, the bank stress tests, the emergency lending and asset purchases by the Federal Reserve, and the Obama administration’s fiscal stimulus program, the nation’s gross domestic product would be about 6.5 percent lower this year. In addition, there would be about 8.5 million fewer jobs, on top of the more than 8 million already lost; and the economy would be experiencing deflation, instead of low inflation.” http://www.nytimes.com/2010/07/28/business/economy/28bailout.html?_r=1&emc;=eta1

Thats My Name Too - 30 July 2010 08:44 AM

Two leading economists “wielding complex quantitative models” say they have proven that the federal government’s “sweeping interventions to prop up the economy since 2008 helped avert a second Depression.”

In a new paper, they “argue that without the Wall Street bailout, the bank stress tests, the emergency lending and asset purchases by the Federal Reserve, and the Obama administration’s fiscal stimulus program, the nation’s gross domestic product would be about 6.5 percent lower this year. In addition, there would be about 8.5 million fewer jobs, on top of the more than 8 million already lost; and the economy would be experiencing deflation, instead of low inflation.” http://www.nytimes.com/2010/07/28/business/economy/28bailout.html?_r=1&emc;=eta1

I think most people in their heart of hearts realize that it probably would have been a lot worse had it not been for the intervention by both the Bush and Obama administrations.  All the right-wing grandstanding about the deficit rings hollow.  They ought to just shut up and count their blessings.

I agree that the bank bailout had to be done but I don’t think it was done properly. It was done in haste and a lot of money was wasted. The threat of a global economic meltdown was used to force the Bush Administration and Congress to go along with some shady deals. Why was Goldman saved but Lehman left out to dry? These questions need to be answered.

The trillion dollar Stealfromus package passed by the Dem controlled Congress and President Obama was nothing more than a congressional earmark list that every congresscritter kept in their top drawer. It’s been a huge failure and a waste. Plus the bill was filled with other legislation that we still don’t know all of its’ effects. The stealfromus has been a total failure and the Dems and Obama will see the reaction of the people in November.

roux - 30 July 2010 10:03 AM

I agree that the bank bailout had to be done but I don’t think it was done properly. It was done in haste and a lot of money was wasted. The threat of a global economic meltdown was used to force the Bush Administration and Congress to go along with some shady deals. Why was Goldman saved but Lehman left out to dry? These questions need to be answered.

The trillion dollar Stealfromus package passed by the Dem controlled Congress and President Obama was nothing more than a congressional earmark list that every congresscritter kept in their top drawer. It’s been a huge failure and a waste. Plus the bill was filled with other legislation that we still don’t know all of its’ effects. The stealfromus has been a total failure and the Dems and Obama will see the reaction of the people in November.

TARP (bank bailout) was a waste as well.  I’ve read that most or all the money has been paid back, which is great.

However, we were promised (I was personally promised by my U.S. Rep.) that TARP included guidelines by safeguard against the Too Big to Fail model that contributed to much of the problem.  But that was a lie, or he was flat uninformed.  TARP actually promoted Too Big to Fail by giving the big financial institutions money to buy up the ones about to collapse.

Like I said it was done is haste. You had the Treasury Secretary claiming there would be riots in the streets and it scared the crap out of Congress.

They need to separate investment banks and commercial banks. It was a bad idea to allow them to combine. Many small commercial banks are doing just fine because they have been conservative in their lending and investing.

This guy was photographed at Hobby Airport in Houston while waiting for a flight. He was getting a “thumbs-up” and applause from most of the crowd.

fred - 30 July 2010 12:59 PM

This guy was photographed at Hobby Airport in Houston while waiting for a flight. He was getting a “thumbs-up” and applause from most of the crowd.

I would have expected no less from our ignoramus cousins to the west.