Friday, September 11, 2009
U.S. Economic Growth to Slow as Car Rebates End, Survey Shows
Yes, the one thing that actually worked: getting money in the hands of consumers, is being halted. A measely, $2 billion program that had enormous bang-for-the-buck impact is deemed too expensive and shut down.
Yet nearly one-third of the deficit--or $400 billion--is due to Tarp, which has ZERO influence on aggregate demand.
Tarp came about because people like Hank Paulson did not understand that banks are functionally agents of the government and they could have been easily sustained by the Fed if it had done the right thing, which was to lend on an unsecured basis and without limit.
Instead, money was thrown at investment banks and other intermediaries that should have failed without consequence to the financial system and real economy if the situation was properly attended to.
Because of all this massive mismanagement 14 million Americans continue to be without a job and the list of countries emerging from recession grows every day while the U.S. again faces the prospect of further contraction.
What a bunch of policy idiots.