Obama's speech on the economy
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Of course, there are some who argue that the government should stand back and simply let these banks fail - especially since in many cases it was their bad decisions that helped create the crisis in the first place.But whether we like it or not, history has repeatedly shown that when nations do not take early and aggressive action to get credit flowing again, they have crises that last years and years instead of months and months - years of low growth, low job creation, and low investment that cost those nations far more than a course of bold, upfront action. And although there are a lot of Americans who understandably think that government money would be better spent going directly to families and businesses instead of banks - "where's our bailout?," they ask - the truth is that a dollar of capital in a bank can actually result in eight or ten dollars of loans to families and businesses, a multiplier effect that can ultimately lead to a faster pace of economic growth.
Read more plus the full transcript at HuffPo.
Labels: Barack_Obama, Financial_Crisis
posted by Mary Ellen Hunt | 9:58 AM
1 Comments:
Attached is a good article that shows the false wealth creation of the last three decades and how it increased the wealth allocation to the financial "wizards".......the current policies appear to be accelerating, not fixing the problem.
http://seekingalpha.com/article/131580-the-seduction-of-america
I feel like people are hypnotised by the handsome young president and are not paying attention the the further re-allocation of wealth to our financial friends.
The gov is throwing taxpayer money to same players who got us into this mess, without structural reform and regulation.
Agreed they needed to inject capital fast, but now lets fix the system.
I am not talking about the bonuses, they are relative peanuts (media distractions). Where is the regulation on the amount of leverage banks, consumers and hedge funds can use?
Where is the demand for innovation in energy and autos? Army of teachers?
We are at very high debt levels and with the baby boomers about to start drawing down on their "entitlements" it is going to get worse.
Tell a friend!
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