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Originally Posted by Slava
This in particular is not totally accurate. Was there pork barrel politics involved in TARP? Absolutely. Obama had nothing to do with it though. TARP was passed before the election even took place, although the republicans consistently play revisionist historian and skip that point.
Furthermore, the entire economic system was crumbling. Something had to happen, and frankly there were very few entities who were in any position to do anything about it! The government absolutely had no choice but to act, and to act very fast. In that circumstance (which I can only assume is incredibly stressful and full of untold pressures) there could be mistakes made, but the mistake of doing nothing would've catastrophic.
Lastly, these so called fiscal conservatives are going to be in for a rude awakening. QE2 was unveiled today by the Fed, and if anything doesn't go far enough. The people in the US who feel that no bailout was needed, and that no debt relief or anything should take place now are about to learn a hard lesson in economics. Paul Krugman has been arguing for increased debt relief because without it those in debt will only pay down debt and not spend; those without debt feel that the recovery is tenuous and won't borrow/spend and of course business is not going to spend despite being flush with cash for the same reasons. All of that points to the need for increased debt relief and spending by the government. Failing that, it just prolongs the economic doldrum and means that this tea party way of thinking will be the root cause of that prolonged state.
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KRUGMAN???!!!!
Honestly, his comments part of his blog were once the place to go for seriously great information on the economy. The guy who shut down his comments part (now restricted to 3 sentence postings) because he was getting he head handed to him by people that actually understand economics.