Originally Posted by
Roody
I do fear a recession. In fact, I fear a depression. But there is some reason to hope. You mention Bernanke and Volker, but I mention Obama as our best hope right now. I'm familiar with some of his policy speeches and papers. He saw this **** coming a few years ago. He's prepared to respond vigorously and intelligently, and he quotes Krugman--"It's more dangerous to do too little than to do too mauch." So I think there will be a bailout, if the auto companies can make their case. And I believe it will have strong conditions and expectations for the execs, labor, creditors and finance institutions. They might convince private investors to help also, which would make the conservatives a little happier, I think.
Well, we are in a recession - I just don't fear it. It happens. Must be tied to my outlook on life, but I do agree that is it not a good thing and fear is not the most irrational reaction.
Obama is for change, but did you know that according to N Greg Mankiw, who was appointed by Bush (W) for something economic in the 1st term, that Obama's economic appointments contain his (Mankiw's) teacher, student, and classmate? How much change can that really be - I know that my classmates, be it Republicans or Democrats, are learning and essentially believing pretty much the same thing.
"As a student of Alan Blinder, Larry Summers, and Stanley Fischer, I was trained to view the short-run effects of fiscal policy through the lens of Keynesian macroeconomic theory. I am sure that many of the economists in the new Obama administration share that intellectual framework. After all, they are being drawn from my teachers (Larry Summers), my fellow students (Christina Romer), and my own students (Jason Furman)."
-from Mankiw's blog
Dr. S. Fischer was also the doctoral advisor for Dr. Bernanke. My textbook is by Dr. Bernanke and I can say first hand it very much reflects what Dr. Mankiw wrote.
As a side note, economists have a fondness for never ever noting the fact that they all have PhDs...
As for Krugman, Ph.D. (lol), he may be great as a Keynesian, but he seemingly failed in dealing with Japan's liquidity crisis that still is lingering and many are saying we are entering something similar - a perfect storm to say the least. Even so, I am not worried. Economics is making leaps and bounds and I am certain I can make some amazing discovery to save us all :-)