It is a very significant statement, so I wanted to make sure I capture it. Former Fed Chairman has said… NOW.. that the current global recession will “surely be the longest and deepest” since the 1930s. Huh! It must take a lot from a guy who CREATED this mess to come out and speak like that?!!!
He further said:
“To stabilize the American banking system and restore normal lending, additional TARP funds will be required,”
And then said that the housing recovery is central to ending the crisis.
Now, I am not a Neo-Con Republican who just pretend they live in a Capitalist society and NOT in a democracy.. for democracy has its own pressures. I do believe that the input of money into the economy is necessary to save the world and economy from complete social collapse. The social cost of letting, say AIG fail or even GM fail is HUGE!
But for this clueless idiot to say that taking care of the housing will take care of the economy is nonsense! He and others keep talking about consumption, as if once people start buying.. things will be fine again. But, like Peter Schiff, I too believe that this is utter nonsense! How can you not produce enough and still want to consume!?? This is precisely what has landed this country and the western economies in such a mess. The more we go on like this without production and only emphasizing on consumption.. we will remain in this ditch… worse still, the ditch will get only deeper!
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