September 19, 2010

WHICH IS WHY W AND THE UR DESERVE CREDIT FOR TARP PREVENTING A DEPRESSION...:

The Economic Blame Game: Both the right and the left are wrong. (Robert Samuelson, 9/19/10, Newsweek)

True, many recovery policies came from the Federal Reserve, and others—notably the unpopular Troubled Asset Relief Program (TARP)—began under the Bush administration. Obama’s contributions included the “stimulus program,” a rescue of the auto industry, and a “stress test” for 19 large banks. The “stress test” explored whether banks needed big infusions of capital. Most didn’t.

The process was messy, and although many details can be questioned, the overall impact was huge. Without government’s aggressive response, gross domestic product would have dropped 12 percent instead of 4 percent, and 16.6 million jobs would have been lost instead of 8.4 million, estimate economists Alan Blinder of Princeton and Mark Zandi of Moody’s Analytics. Unemployment would have hit 16 percent. These numbers, too, can be disputed (they seem high to me), but the direction is certainly correct. [...]

The right’s sweeping indictment of Obama is wildly exaggerated. However, it’s not entirely misplaced.

Confidence is crucial to stimulating consumer spending and business investment, and Obama constantly subverts confidence.


...and why the House GOP almost caused one. It is the UR's performance in the absence of W's leadership that has been blameworthy.

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Posted by Orrin Judd at September 19, 2010 8:09 AM
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