As Congress struggled to pass the $700 billion bailout bill, President Bush reached out to his past economic adviser Al Hubbard for assistance. Leaders of the Bush economic team, Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke, told Congress that failure to pass the bailout for the financial industry could mean recession. But Al came to the rescue.
One month later, the current White House economic adviser said parts of America are already in recession. Credit markets aren't projected to loosen for some time.
"This economy is based on credit and based on confidence and right now the confidence isn't there and that's why Secretary Paulson and Ben Bernanke have decided we have to take this major step," said Hubbard.
Hubbard added he can almost guarantee a happy ending if the bailout passes.
One month later, the current White House economic adviser said parts of America are already in recession. Credit markets aren't projected to loosen for some time.
Although it will take a few months for a significant impact from the Treasury's $700 billion credit market rescue plan, the first signs of response are already apparent, Ed Lazear said.
It's time for Al to make good on his guarantee. I envision something like the penalty for failure to drive a golf ball past the ladies tee.
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