On Oct 1, 2008, at 11:57 AM, Doug Henwood wrote:
On Oct 1, 2008, at 11:45 AM, Jim Devine quoted Dean Baker:
The weakness of the banks contributes to the downturn, but they are
not the core of the problem. We would still be facing a recession
even
if all our banks were flush with cash. Hence the hype about the
urgency of the bailout was an invention.
This really gives me pause. The financial system is imploding, and
is in desperate need of recapitalization. One of the things that
turns a recession into a depression is a cascading wave of bank
failures and a contraction of credit. (This is something that
Bernanke knows a lot about.) Intervention has to be quick or it will
be too late.
How odd that Doug Henwood parrots the Bush-Bernanke-Paulson-Obama
hysteria about how a huge giveaway to finance capital is needed to
avert a "depression"--when a depression is inevitable, and will be
much worse (maybe a little later) as a result of this vast
inflationary credit expansion.
Shane Mage
"Thunderbolt steers all things...it consents and does not consent to
be called Zeus."
Herakleitos of Ephesos
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