It doesn't prove anything, except a lot of professionals who have spent a great deal of time studying and teaching economics totally disagree with the path the Obama administration has chosen to recover the economy. And After witnessing the complete and utter incompetence of those in power in Washington over the past year, I wouldn't dismiss it as irrelevant noise or “just some list” as some have suggested.
Speaking of questionable economists; Ben Bernanke has been working closely with Henry Paulson for quite some time and they've had full access to the best economic data available. With all the data they had available, as recently as Labor Day, Bernanke believed the economy was still expanding, if slowly; “A lot can still go wrong, but at least I can see a path that will bring us out of this entire episode relatively intact,” he said in August 08.
Here are a few Paulson quotes :
April 20, 2007 — “I don’t see (subprime mortgage market troubles) imposing a serious problem. I think it’s going to be largely contained.”
July 26, 2007 — “I don't think it [the subprime mess] poses any threat to the overall economy.”
December 7, 2007 - “The US banking system is well-capitalized and ‘we have a strong deposit insurance system that provides good coverage for the savings of hard-working Americans.’”
March 16, 2008 — “I have great, great confidence in our capital markets and in our financial institutions. Our financial institutions, banks and investment banks, are strong. Our capital markets are resilient. They’re efficient. They’re flexible.”
May 16, 2008 — “Looking forward, I expect that financial markets will be driven less by the recent turmoil and more by broader economic conditions and, specifically, by the recovery of the housing sector.”
July 20, 2008 — “It’s a safe banking system, a sound banking system. Our regulators are on top of it. This is a very manageable situation.”
With the track record they've shown, is it any wonder so many are voting no confidence in the markets to their latest pronouncements of a cure to the economy - especially since Geitner is proceeding down a path of Paulson policies on steriods. |
