http://www.nytimes.com/2008/12.../02tarp.html?th&emc=th
?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.
.....
"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.?
Treasury Secretary Paulson has been wandering around in the desert for the past two years, doing more harm than good. He should resign now, and Bush should appoint Geithner pending his confirmation by the Senate. Time's awastin' and the economy is not improving under Paulson's 'leadership'.
I've opposed this bailout approach from the beginning because it's a top down approach, and we need more stimulus at the bottom. Correct the regulatory abuses at the top, but help the struggling homeowners and wage earners. I'd suggest a one year tax holiday for everyone earning under $100,000 a year, plus some strong programs to save people from foreclosure. I also think a public works program-as Obama and Stieglitz have both suggested-is a great approach. At least we get something for our money. Bailing out the banks and Detroit will only get us more indebtedness to the Chinese, and nothing else.
I wish Ms. Warren luck. Giving direction to Congress is like herding cats.
-Robert
?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.
.....
"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.?
Treasury Secretary Paulson has been wandering around in the desert for the past two years, doing more harm than good. He should resign now, and Bush should appoint Geithner pending his confirmation by the Senate. Time's awastin' and the economy is not improving under Paulson's 'leadership'.
I've opposed this bailout approach from the beginning because it's a top down approach, and we need more stimulus at the bottom. Correct the regulatory abuses at the top, but help the struggling homeowners and wage earners. I'd suggest a one year tax holiday for everyone earning under $100,000 a year, plus some strong programs to save people from foreclosure. I also think a public works program-as Obama and Stieglitz have both suggested-is a great approach. At least we get something for our money. Bailing out the banks and Detroit will only get us more indebtedness to the Chinese, and nothing else.
I wish Ms. Warren luck. Giving direction to Congress is like herding cats.
-Robert
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