Jump to content

Archived

This topic is now archived and is closed to further replies.

natty

Obama would regulate new 'bubbles'

Recommended Posts

natty    555

http://www.politico.com/news/stories/0409/21393_Page2.html

As he battles the economic downturn, President Barack Obama is bracing Americans for a recovery different than any in recent memory – not a go-go return to prosperity like the 1990s but a slow, steady climb to stability.

“We know that an economy built on reckless speculation, inflated home prices and maxed-out credit cards does not create lasting wealth. It creates the illusion of prosperity, and it’s endangered us all,” Obama said recently.

Obama has mainstream support for his position, including from Mark Zandi, an oft-quoted economist at Moody’s Economy.com who advised John McCain during the 2008 campaign. But Zandi said there’s not much an administration can do in practical terms to burst a developing bubble. The best way to cool things down is raising interest rates, which is the purview of the Federal Reserve. Another option would be for regulators to order banks to curtail lending to buyers of certain kinds of assets.

I'm curious as to how he's actually going to do this. Sounds like pandering to the public to me.

Why not try ensure no company or market is able to bring down the entire economy instead? Bubbles happen and then they burst, what's so bad about those responsible for it taking the downfall? Speculators take risk, that's what they do. You can't expect to change their habits, just make sure they don't bring everyone else down with them.

Share this post


Link to post
Share on other sites




rodeo    13,776

in protest i am going to use tea in my bath instead of bubbles.

who will join my teabath party?

Share this post


Link to post
Share on other sites
Delhommey    2,796

Sounds like it would be the Fed doing its job rather than being Wall St.'s lapdog like it has been for the past few years.

Share this post


Link to post
Share on other sites
LiQuiD    59

in protest i am going to use tea in my bath instead of bubbles.

who will join my teabath party?

Faux News just called. If you'll allow them to sponsor, they will give you full coverage. And Hannity will be joining you in the tub.

:yikes:

Share this post


Link to post
Share on other sites
SCP    30,419

I thought an Olbermann and Gerafelo threesome would be more your niche.

Share this post


Link to post
Share on other sites

×