WASHINGTON (AP) – Confronting misgivings, even in his own party, President Barack Obama mounted a stout defense of his blueprint to overhaul the economy Thursday, declaring the national crisis is “not as bad as we think” and his plans will speed recovery.
Barack Obama recently named Austan Goolsbee, the wanna-be comedian, to lead the Council of Economic Advisers. Goolsbee tells America that unemployment will remain high for, well, likely as long as Obama remains President:
“I don’t think the unemployment rate will be coming down significantly at any time in the near future,” according to POLITICO’s Mike Allen.
Obama has described Goolsbee as
“…someone who has a deep appreciation of how the economy affects everyday people,”
Sounds great, if only you could believe it. Goolsbee is just another policy wonk who has zero experience in the real business world. He is the perfect fit for the Obama administration.
But Goolsbee doesn’t hold a candle to Larry Summers or Tim Geithner. Summers, a key player in the first stimulus package, is often described as a genius, but his genius seems to lie in his crystal clear hindsight.
He was all for a stimulus package in late 2008, but in 2001 argued against stimulus spending:
“The idea that a huge spending program is the way to stimulate the economy, or the idea that the way to get better at high tech is for the government to take over the technology industries, these kinds of ideas basically have become passe because they’ve been disproven,”
He is described as foreseeing the mortgage crisis;
“Three months ago it was reasonable to expect that the subprime credit crisis would be a financially significant event but not one that would threaten the overall pattern of economic growth. This is still a possible outcome but no longer the preponderant probability,”
Yet Summers was an architect of that crisis.
In 1998 Brooksley Born, chair of the Commodity Futures Trading Commission, decided that derivatives ought to be regulated but encountered a buzzsaw of opposition:
She ran into a firewall called the Working Group: Alan Greenspan, chairman of the Federal Reserve, Treasury Secretary Robert Rubin, Assistant Treasury Secretary Larry Summers and SEC chairman Arthur Levitt. Rubin, Levitt, Summers and Greenspan lobbied Congress to pass a law to stop Born and strip her agency of its regulatory power, which they did after working her over in committee hearings. She ended up resigning, feeling that she could not do what she believed was her job to, because that power had been stripped away in what seemed like the seediest of manners.
The guy who argued that new bank reforms would end “too big to fail” is the same guy who made “too big to fail” possible:
As a 1999 New York Times article entitled “Congress Passes Wide-Ranging Bill Easing Bank Laws” quotes Summers as saying:
”Today Congress voted to update the rules that have governed financial services since the Great Depression and replace them with a system for the 21st century,” Treasury Secretary Lawrence H. Summers said. ”This historic legislation will better enable American companies to compete in the new economy.”
In an eerily prescient article, Mark Ames predicted the mess that Summers would create
We all know in the backs of our minds that Barack Obama’s incredible victory will eventually be followed by disappointment. But does it have to come so soon, and hit so hard? The answer will be yes, if Lawrence Summers is named treasury secretary in the president-elect’s cabinet, as many observers believe will be the case. Summers was one of the key architects of our financial crisis — hiring him to fix the economy makes as much sense as appointing Paul Wolfowitz to oversee the Iraq withdrawal. And when you look at the trail of economic destruction Summers left behind in other crisis-stricken countries who sought his advice in the past, then “terror” might be a more appropriate word than “disappointment.”
And two weeks later:
Obama picks Summers as top economic adviser
Summers, who uses Google searches as a means of measuring economic progress
The number of people searching for the term “economic depression” on Google is down to normal levels, Summers said.
made his own predictions about the effect of the stimulus:
“Given lags in spending and hiring, the peak impact of the stimulus on jobs was expected not to be achieved until the end of 2010,” Summers said in a speech at the Peterson Institute for International Economics in Washington.
Unemployment is at 9.6% and Goolsbee says there’s basically no hope in sight.
Obama’s chief economic adviser is largely responsible for putting the US into its current financial crisis.
But more importantly, Summers is the guy responsible for:
•Allowing the banks to carry extraordinary levels of debt, thirty-to-one fractional reserve banking margins
•Ensuring that derivatives were not regulated, and that AIG could operate as a giant hedge fund
•Repealing New Deal era legislation which separated investment banks from commercial banks, insurers and stock brokers, and which kept companies from becoming “too big to fail”
And Obama’s Treasury Secretary- the guy who can’t figure out Turbo Tax?? His job was to keep an eye on CitiGroup:
As president of the New York Federal Reserve Bank, Timothy Geithner often preached that gargantuan financial firms like Citigroup should be held to the highest regulatory standards to make sure they couldn’t take on too much risk.
But when it came to supervising Citigroup in recent years, the record shows that the New York Fed eased the reins as the company blew billions on subprime mortgages and other risky deals that ultimately forced the biggest bank rescue in U.S. history.
Two of the biggest failures in financial history are in charge of our financial future.
The stimulus has failed.
This discussion would be remiss in not including a fun snippet from J. Bradford Delong, a virulently anti-Republican economist:
On the phone just now, Larry Summers just moved me appreciably toward enthusiastic support of the stimulus package by arguing, roughly:
•The big arguments against the stimulus package are two:
◦It will become a destructive lobbyist Christmas tree
◦It will increase the deficit and yet fail to stimulate the economy
And that second argument?
The second argument is incoherent
The much-heralded financial reform law left two huge loopholes for derivatives and Fannie and Freddie are still “too big to fail.”
To paraphrase Einstein, insanity is enlisting the aid of the same people who caused this mess in the hopes of a different outcome.
Goolsbee can always go back to stand-up.
See author page
Obama is taking our economy back to 1939. If he gets his way all the Soviet five year plans ad infinitem won’t bring it back. He will destroy this nation if allowed to do so. Time to make him and his minions go bye bye.
If the GOP controls ONE house of congress, there will be an economic recovery. The recent stock market rally is pricing in a GOP victory in Nov.
Yep. Obviously a better approach to economic recovery is to:
(1) give the wealthiest–who are already sitting on the biggest heap of money in American history–another round of tax cuts, at a cost of hundreds of billions per year in increased deficits;
(2) deny tax relief to everyone else if you can’t get the first item, by seeing to it that their taxes will be raised by default; and
(3) block budget-neutral legislation that provides tax relief and encourages new lines of credit to America’s small businesses for as long as possible–even though many of your own ideas have been incorporated into that legislation.
Greg the braindead shows why the left will lose big in Nov. The left is incapable of doing anything but pushing theit socialist agenda. No matter how badly it fails, they insist they need to do it again, but even bigger than last time.
They are like a skipping record. Tax the rich, tax the rich, tax the rich…
I believe you’ve just summed up my chief concern about the current republican agenda.
@Greg
Yours may be a concern, while we know for certain the liberal economic model does not work. It seems Europe knows this too, as well as China, hence their move towards capitalism and away from socialist programming.
@Greg
This isn’t another round of tax cuts. It’s been the law for a long time. Now it will all be Democrats who will increase taxes on everyone.
On everyone.
Good luck with that.
BTW, Greg, how does it feel knowing that absolutely ALL of the current financial mess is and was square in the hands of Democrats?
Whoops, a Mutiny on the Good Ship Lollipop!
House Democrats Join Republicans in Opposing Obama Tax Plan
Outstanding! Let them try to push their Agenda before the Elections!
Duhh!
It seems to me that if Obama is trying to pass a new $50 billion dollar “stimulus” plan, mentioned earlier this month, does he not know that he is talking out of both of his orifices?
Here’s the problem. Today there’s news that the Dems will not venture to vote for Obama’s tax ideas; namely cutting off the tax breaks for millionaires, while leaving tax incentives for those earning $200,000 or less. Not with an election coming up; which Dems are already losing big time.
Obama said that he does not want to extend the tax breaks for the wealthy because it would cost $700 Billion dollars and amount to about $100,000 per wealthy taxpayer. These are his numbers, I guess. But here’s the problem. Obama says that the $700 Billion would not do much to help the economy. It is too little relief.
What I say is what I’ve always said since Obama took (or stole) office; and that is that Obama does not know what the heck he’s saying at anytime of the day on anything he chooses to talk about.
If $700 Billion will not serve to stir the economy, then what the heck, or why the heck, is Obama promoting a $50 Billion dollar plan? If $700 Billion won’t do anything, can you image what a pittance $50 Billion in tax relief won’t do.
I’m not kidding when I say that having Obama decide anything at all, especially on economic issues, is like having an exceedingly drunk driver trying to steer a vehicle.
America cannot afford to have increased taxes at a time when so many prices are going up. The sizes of products are shrinking. And there are layoffs, firings, cutbacks, bankruptcies, record breaking business failures and foreclosures. Obama is DUMB to all of this. What we need are tax cuts across the board. Wealthy individuals and businesses are the ones who hire, not the poor, and right now we need to incentivize these folks.
In truth, right now, the best thing that could happen in America is the resignation or removal of Obama. There is no room in our America for Obama’s socialist policies and the overwhelming support by voters of conservatives running for congress is proof that America needs to get back on the RIGHT track.
Greenspan: Stimulus package “worked far less than expected
http://hotair.com/archives/2010/09/15/greenspan-stimulus-package-worked-far-less-than-expected/
So there you have it Folks. A Billion $$$ here, a Billion $$$ there and after a while you are talking about a whole lot of borrowed money being pissed away by the most Economically Illiterate Regime and POTUS ever.
Rev II
OLD TROOPER 2: hi, YES and they where warned from the beginning, not to go this way
WARNED by EXPERTS and very knowledgeble peoples.
@ ilovebeeswarzone, Absolutely, every American school kid knows that you can’t go to the candy store with 5 cents and buy $20.00 worth of candy. But then the Current Congress and Regime are spending OPM, Other Peoples Money.
OLD TROOPER EXACTLY true, YEARS ago ,I had an uncle who was always borrowing money,
from each one he could get,and we learned that he was known to be very generous with his friends,
and he would never pay back the one he owe it to, I was so angry to learn that,
I decide to go after him and demand the money for the lenders who where taking it from their budget to help him. that was a good learning lesson, when later I encounter another one
with same attitude, to spend other people’s money on trivial expanses,
IT seems that there is many of those in power jobs,out to ruin the PEOPLE, but
IT take only one to transfer his MENTALITY to other to follow him toward destruction
Top headline on FOX this morning: “Home Foreclosures Jumped to Their Highest Rate Since Crisis Began”. More evidence the Stimulus Prgram has done a real outstanding job. It’ll be interesting to see how the administration and their sheep spin this one.
@Old Trooper 2:
I’m going to e-mail your post to family and friends, hope it circulates far and wide. 😉
I wonder if MR BUFFET and BILL GATE are still friendly with THE LEADERSHIP of the DEMOCRATS
AND their ACCOMPLICES.
@ another vet…Not to worry, Pardner…
http://www.youtube.com/watch?v=P36x8rTb3jI
The man is an absolute genius…
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@ Missy, Just another rainy day at my spread, temps in the 50s so I have the time to reflect on the Current Regime’s achievements and wonder what they will pull out of their backsides today.
We know what has happened so far…
The destruction of the nation, the economy, the financial sector and the trampling of our liberty are DELIBERATE!!! That’s why there will be no recovery with Hussein in the Whitey House!! I hope to GOD people are finally beginning to understand that !
@Old Trooper 2:
Well, it’s raining here too so I will have time to roast that turkey I was supposed to do yesterday when I had to much to do outside.
Wondering what they are going to “pull out of their backsides next?”
No recovery as long as Obama is President and Harry Reid remains Senate Majority Leader:
http://www.investors.com/NewsAndAnalysis/Article/547416/201009151907/Reids-DREAM-Rider.htm
@Old Trooper 2
Unless you’re a community organizer. 😛
@ DrJohn…or you have grifters like Maxine Waters that would Nationalize the Candy manufacturers and hand it out on street corners for future votes. 😉
MISSY: hi, HARRY REID is showing WHO he is with that bill, hopfully no rooted AMERICAN would allowe that to be past and the REPUBLICANS should not see any goodys there for the MILITARYS,
THIS show how low they will go to sacrifice the AMERICANS and the MILITARYS at war, getting hurt and dying for their country, HOPE SHARON expose that person to be corrupt not fit to serve AMERICA’s interest , and has never been before. how low can he get, and he did,
GO SHARRON ANGLE, GET him out FOR THE SAKE OF AMERICA THE BEAUTIFULL.
Ummm Greg, the GOP wants to do what has worked in the past to stimulate the economy and provide more freedom to the people. I’m not surprised you have a problem with that.
@Missy, #23:
Was it considered a new low when republicans previously voted to do the same thing with the same plan? Senators Orrin Hatch and Bob Bennett of Utah both voted in favor of adding the bill to the defense authorization bill only 3 years ago.
http://www.sltrib.com/sltrib/home/50292492-76/act-dream-bill-hatch.html.csp
The Development, Relief, and Education for Alien Minors Act was originally introduced and sponsored by Senator Hatch during the 107th Congress, as S.1291. There were 6 republican co-sponsors:
http://www.govtrack.us/congress/bill.xpd?bill=s107-1291
Senator Hatch sponsored it again during the 108th Congress, as S.1545. There were 5 republican co-sponsors.
It was introduced and sponsored during the 109th Congress by Senator Richard Durbin, a democrat, as S.774. There were 5 republican co-sponsors.
It was introduced by Durbin this time around, too, but now there’s only one republican co-sponsor, who apparently hasn’t gotten word yet about the menace of undocumented kids who want to attend college or go into the military to serve the country they’ve found themselves growing up in.
@ Greg, More than a few Thousand have Served in the Military, became Citizens and now have GI Bill Benefits to attend University, Community College or Voc Tech Institutes as “Citizens” that are valued members of society.
So..what is your point?
This is what happens when you send a boy to do a man’s job. Our MSM must share the blame for 0-bama and his failures. It was they who failed to do their job and tell America how out of touch and un qualified this guy was. He’s too stupid to know it.
@Greg
Bob Bennett?
Did you happen to notice what happened to Bennett?
@OldTrooper2, #29:
My point is that I don’t think it’s a bad bill. Neither did a lot of republicans. The bill hasn’t really changed much. What’s happened is that partisan political posturing is distorting perception. Some things that should matters of common concern and agreement aren’t, simply because of politics.
@ Greg, there is a Legal pathway to Citizenship. Reid and others are just pandering for votes.
Just writing more Laws is foolish and a waste of time. It is a cheap political stunt no matter Who backs it.
How about that Summer of Recovery and getting a Bang for the Taxpayer’s Buck?
L.A.: $111M in Stimulus Saved Just 55 Jobs
http://www.foxnews.com/politics/2010/09/16/los-angeles-official-disappointed-city-used-stimulus-funds/
*****************************************************
I’d give them an F. 111 Million $$$ for 55 Jobs? WTF?
OT:
The wage scale is much higher in SoCal.
Besides it sounds like they are going to try much harder on Stimulus 2.
Don’t worry Pelosi, Waters, and Lee will be on the next stimulus. You can bet that all new outhouses will be two seaters, there is too much inefficiency in our government and it will take women of high principle to sort it out. Don’t forget we have Boxer and the other nitwit also, you can trust that every dime will be spent!
@ Skookum, I recall the tale of the two story outhouse. The taxpayers always seem to get the bottom floor. 😯
OT: You’re familiar with the term “Cheap Seats”.
@ Skookum, yeah like during the Clinton Regime, I got two for the price of one. Deployments to both Somalia and the old Yugo Republic but no frequent flyer miles. Actually front row seats to witness years of Foreign Policy failure. Some folks paid dearly for those deployments but I’m still
around to see more of the same from my patch of Montana high ground and not a patch of Rocks and Sand that God Forgot or a piece of Hell in Eastern Europe.
OLD TROOPER
today APRIL 28 2012 , time went by but today is equivalent of this POST,
AS IF SUSPENDED IN TIME.
EXCEPT FOR THE UNKNOWN