Volcker named to reassure markets
Paul Volcker has been named to lead a new economic panel, the President's Economic Recovery Advisory Board, whose brief is to "stabilize financial markets."
This one is all about perception, the legendary Republican Fed Chief Volcker and top CEOs having the ear of the new President.
Interesting that this is also where Obama campaign adviser Austin Goolsbee lands, carrying dual duties between this group and the White House Council of Economic Advisers.
(Because of Volcker's age, is this as involved as he wanted to be?)
This one is all about perception, the legendary Republican Fed Chief Volcker and top CEOs having the ear of the new President.
Interesting that this is also where Obama campaign adviser Austin Goolsbee lands, carrying dual duties between this group and the White House Council of Economic Advisers.
(Because of Volcker's age, is this as involved as he wanted to be?)
posted by mikevotes at
6:51 AM
2 Comments:
What is wrong with giving the American household a check for $13,000? The $13,000 would do much better in the people’s hands. The $13,000 is less than the government is spending on the original bailout and the new proposed $800 billion. If an economic advisory board cannot put the people before their selfish reasons something is very wrong. If the people had the money they would spend it and then jobs would be added, manufacturing would grow, and last but not least the states would gain money in the form of sales taxes not to mention the added income taxes from the extra workers.
http://nomedals.blogspot.com
By
Jason, at 6:03 PM
I get your point, and, from a stimulus perspective, you're right, but a couple things.
First of all, they're not just giving away cash, at least not all of it. For instance a good chunk of the TARP funds are being exchanged for an equity stake which will, in theory, eventually be sold back to the market. (However, the logistics of doing that without tanking the stocks is another matter.)
Some of the money also is going out as loans which, in theory, should be paid back if the companies don't go belly up.
Now, to the broader point, sending out checks would greatly stimulate the economy, but it would also likely lead to the dissolution of the current credit system, meaning that it would be extremely difficult to borrow money for some significant period of adjustment which would lead to tons of small and medium sized businesses failing, unemployment, etc.
They're doing what they have to do, nobody likes it.
(The one argument for the direct payment side is that, in theory, a certain percent of that money could find it's way to debt repayment which could help bouy the financials, but the delay, and uncertainty probably wouldn't allow them to make it that far.)
By
mikevotes, at 8:42 PM
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