Ernie,
Good article. There is no way to make such a gigantic government intervention in the economy without screwing up some things, but to sit on the sidelines to try to get everything perfect while the walls are tumbling down would be a bigger mistake. Yes, Bush's 350 B was misappropriated, and Obama's stimulus will not be perfectly executed, but these quick and decisive actions were necessary. The Fed's aggressive actions and the bank bailouts are also necessary. I have been a fiscal conservative for decades. I looked on in horror and wonder as the deficits grew after 9/11. I remember the stagflation of the early 80s. I hate the impact the combined stimulus packages are having on our country's balance sheet, but the lack of action leads to even greater danger. In the 30s all of FDRs work project programs were not nearly big enough. It took the stimulus of WWII to snap the economy back into gear. I think we are fundamentally on the right track now to avert another great depression. I am heartened by the lack of deflation in the last couple of months. This is extremely significant. Nevertheless, it is going to take a long time until we reach a new post-leverage equilibrium. Chris _____ From: [email protected] [mailto:[email protected]] On Behalf Of Dr. Ernie Prabhakar Sent: Monday, March 23, 2009 12:08 PM To: Radical Centrist Discussions Subject: [RC] Grasping Reality with Both Hands: The Geithner Plan FAQ The Geithner plan may be deeply flawed, but it is probably the best we could hope for under the circumstances. And it might even work. Here's the best analysis I've seen... http://delong.typepad.com/sdj/2009/03/the-geithner-plan-faq.html -- Ernie P.
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