This Surprises… No-One.

1 comment December 2nd, 2008at 07:04am Posted by Eli

How is this different from any of BushCo’s other schemes?

Elizabeth Warren, the chairwoman of the oversight panel, said in an interview Monday that the government instead seemed to be lurching from one tactic to the next without clarifying how each step fits into an overall plan.

“You can’t just say, ‘Credit isn’t moving through the system,’ ” she said in her first public comments since being named to the panel. “You have to ask why.”

If the answer is that banks do not have money to lend, it would make sense to push capital into their hands, as the Treasury has been doing over the last two months, she continued. But if the answer is that their potential borrowers are getting less creditworthy with each passing day, “pouring money into banks isn’t going to fix that problem,” she said.

(…)

Meetings with Treasury officials so far have made her question whether they understand that “household financial health is profoundly tied to the economic health of the nation,” she said. “You cannot repair this economy if you can’t repair those families, and I’m not sure the people directing the bailout see that as their job.”

In her view, the government should be trying to create more reliable customers for those banks by shoring up the fragile finances of the millions of American families that could not save, borrow or spend even if their banks were flush with capital.

“Any effective policy has to start with the households,” she said. “Years of flat wages, low savings and high debt have left America’s households extremely vulnerable.”

Gee, the Bushies have no coherent plan, so they flail around aimlessly, throwing money at their cronies at the expense of everyone else?  When have we ever seen that before?

(h/t Stoller)

Entry Filed under: Bush,Corruption/Cronyism,Economy

1 Comment

  • 1. Cujo359  |  December 2nd, 2008 at 5:00 pm

    I think it would be better to ask “When have we not seen that before?” There’d be much less typing involved to answer that one.


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