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Politics : THE WHITE HOUSE -- Ignore unavailable to you. Want to Upgrade?

To: pompsander who wrote (18133)	3/7/2008 4:57:40 PM
From: Bill	Read Replies (1) \| Respond to of 25737

Indeed. In 2000, when the market crashed and we sank into recession as the Florida results were being sorted out, I had the same thoughts about the doom facing the new administration.

To: pompsander who wrote (18133)	3/7/2008 6:32:34 PM
From: DuckTapeSunroof	Respond to of 25737

The Fed does not have tools sufficient for resolving a liquidity freeze-up situation such as this. 'Pushing on a string' does NOT guarantee that de-leveraging halts or, indeed, that lending resumes. SOME situations cry out for policy shifts, and I'm afraid this is one of them. Unfortunately, the joint holders of the reins over legislative actions - Congress and the Executive - seem mostly clueless and frozen in place. I expect nothing useful (at least not in a timely manner) from current iterations of either.... (PS --- I wonder how the history books will refer to the recession thus spawned? As the 'Bush recession', or the 'second Bush recession'? I'd argue that the very mild and short affair at the start of Bush's first term was but so tenuously connected to the new administration that it hardly qualifies to be named after him. This latest? Well... he certainly is seven years into his job... has nearly doubled the entire national debt [by the end of this year]... approximately $900 Billion of which US sovereign and Agency debt is held by China... and the country is laboring under a current $200 Billion or so annual costs for an open-ended 'war'... and another $200 Billion or so in interest payments on the debt, etc. Hard to skate-away from those significant alterations....)