Tuesday, July 22, 2008

How badly do Republican economic policies mess up the economy?

This badly, in the words of economist James Galbraith in December Surprise Mother Jones Jul/Aug 2008:

Since August, America's big banks have been wards of the Fed[eral Reserve Bank], and those in Europe equally so of the Bank of England and the European Central Bank. The system survives because central banks keep the lending windows open, and the result is that - except for one instance in Britain - the public has not pulled out of the banks. Let's be clear. The private financial markets did actually fail. It's only the fact that the public trusts government that keeps the system from dissolving in panic. But even if the Fed and its counterparts can hold the line, the problem of mistrust among the big bankers won't go away soon. And that means we're at the end of the age of credit expansions, for now. (my emphasis)
The "December Surprise" in the title refers to the fact that, for some reason, the Federal Reserve tends to lower interest rates more and thus contribute a short-term boost to the economy during a Presidential election when there's a Republican incumbent than when there's a Democratic one. Sheer coincidence, I'm sure.

Tags:

| +Save/Share | |

Links to this post:

Create a Link




FEATURED QUOTE

"It is the logic of our times
No subject for immortal verse
That we who lived by honest dreams
Defend the bad against the worse."


-- Cecil Day-Lewis from Where Are The War Poets?


ABOUT US

  • What is the Blue Voice?
  • Bruce Miller
  • Fdtate
  • Marcia Ellen (on hiatus)
  • Marigolds2
  • Neil
  • Tankwoman
  • Wonky Muse

  • RECENT POSTS

  • Links for Netroots Nation reports
  • Netroots Nation (Updated)
  • Small Arms Trafficking
  • McCain's Iraq Policy: DOA
  • Obama and Reagan?
  • Learned Optimism
  • Slumber, My Darling
  • Appalachian Waltz
  • Prohibition Blues
  • "Every bit of that has to change"

  • ARCHIVES




    RECENT COMMENTS

    [Tip: Point cursor to any comment to see title of post being discussed.]
    SEARCH THIS SITE
    Google
    www TBV

    BLUE'S NEWS





    ACT BLUE











    BLUE LINKS

    Environmental Links
    Gay/Lesbian Links
    News & Media Links
    Organization Links
    Political Links
    Religious Links
    Watchdog Links

    BLUE ROLL


    MISCELLANEOUS

    Atom/XML Feed
    Blogarama - Blog Directory
    Blogwise - blog directory

    Blogstreet
    Haloscan


    Blogger

    hits since 06-13-2005

    site design: wonky muse
    image: fpsoftlab.com