Quote Of The Day

“One of the Obama arguments at the time was that the rush in the stimulus program was needed to avoid a Great Depression. This was and is highly doubtful (though, yes, it is widely accepted). The US economic emergency in late 2008 and early 2009 wasn’t really an aggregate demand crisis but a financial crisis. The chaotic failure of Lehman Brothers had led to an intense panic and credit squeeze. The Fed therefore needed to flood the markets with liquidity, which it rightly did, in order to unwind the panic. The Fed’s action was the real difference with 1933 (when the Fed allowed the banks to fail). It was the Fed, not the fiscal stimulus, which prevented a fall into depression.” — Jeffrey Sachs, Responding to Paul Krugman and Crude Keynesianism

One Response to “Quote Of The Day”

  1. Frankie says:

    Having an Africa-american president comes with a price: Once elected, Obama and the DEM controlled Congress enacted a stimulus bill designed to give them cash to pay-off their supporters & cash to buy the BO’s re-election. And they did. Now the economy is burdeneed with all that stimulus debt.

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