tag:blogger.com,1999:blog-7400390336523591685.post3240751774452732811..comments2023-08-24T08:56:06.522-05:00Comments on Rhymes With Clown: This Crisis Best if Used ByJeremy R. Shownhttp://www.blogger.com/profile/11303377672028774152noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-7400390336523591685.post-11996669686117338882010-06-02T06:47:29.943-05:002010-06-02T06:47:29.943-05:00Strupp,
I'm surprised you disagree. My take h...Strupp,<br /><br />I'm surprised you disagree. My take here seems to be amenable to yours (and DeLong's). <br /><br />There was a sense of crisis, but it has passed. It was used to rescue banks that got into trouble, not unemployed Americans.<br /><br />I wasn't arguing that this was a good thing.<br /><br />I don't think DeLong is arguing the Fed has done everything it can to reduce unemployment. He laments they are talking about "applying the breaks," as I quoted.Jeremy R. Shownhttps://www.blogger.com/profile/11303377672028774152noreply@blogger.comtag:blogger.com,1999:blog-7400390336523591685.post-27923287018998510172010-06-01T23:02:16.689-05:002010-06-01T23:02:16.689-05:00"Unfortunately for out of work Americans, the..."Unfortunately for out of work Americans, the real sense of panic came and went in the fall of 2008, when it looked like most of our major financial institutions were insolvent."<br /><br />I disagree. The real sense of panic for out of work Americans was that they were out of work. <br /><br />And rightfully so. Citibank's solvency problems in 2008 should take a back seat to finding a way to put food on the table when you don't have a job. And that's the problem here. The Fed has effectively recapitalized the banks by using the "monetary throttle", but out political leadership has failed on the fiscal front. We've failed to use the printing press to put people back to work and soften the blow from this crisis. Now that the political landscape has changed, we've all but assured ourselves of years of subpar growth, undercapacity and relatively high unemployment. <br /><br />"The "monetary throttle" was used, it now seems, to address this problem by recapitalizing banks, not to reduce unemployment."<br /><br />The Fed. has used every tool in it's toolbox to recapitalize banks and reduce unemployment. Bernanke has done his job following the 2008 crisis. The failure lies with Congress. This is what Delong was trying to say.J. Struppnoreply@blogger.com