Treasury Secretary Timothy Geithner’s assurance that the Great Recession is over will undoubtedly convince many Americans that relief is on the way and that they can loosen their belts and get back to business.
Item: Speaking in Canada where he was attending the Group of 20 summit, “President Barack Obama said on Sunday he would follow through on a pledge to rein in soaring U.S. budget deficits and said that would involve presenting Americans with ‘some very difficult choices’ next year,” reported Reuters for June 27. The President, continued the wire service, “has said the deficits are a legacy of the Bush administration.”
Federal Reserve boss Ben Bernanke told Congress this week that despite not having any imminent plans to further “support” the economy, the central bank was “considering all options” to fight unemployment and could “step into new areas” because the alleged recovery remains “unusually uncertain.”
Earlier this year, it looked as if columnist Paul Craig Roberts had hung up his word processor in disgust, having just published his book How the Economy Was Lost (mostly a collection of his best columns of the past decade) and a swansong article “Truth Has Fallen and Taken Liberty With It.” Recently, however, he has returned with a few new columns, e.g., this one — and a revealing interview with the Swiss-based free-market webzine The Daily Bell.
A triumphant and triumphalist President Obama signed the financial overhaul bill into law July 21, promising as he did that “the American people will never be asked again to foot the bill for Wall Street's mistakes.”
The unremitting flow of negative news about the economy has finally caught the attention of the mainstream media, causing an increasing number of economists to make comparisons between today’s recession and the Great Depression.
The economy has gained either 2.5 million jobs or 3.6 million jobs since the Recovery Act was signed into law in January, 2009, depending upon which statistical “model” is used, according to Christina Romer, Chair of the White House's Council of Economic Advisers. When compared to the report issued earlier this month by the Bureau of Labor Statistics, neither number is even close.
Central bankers and analysts are warning of another credit crisis just around the corner as banks start competing with governments to refinance trillions of dollars in short-term debts coming due soon, resulting in significantly reduced credit availability for businesses and consumers, among other problems.
The Treasury Department’s Troubled Asset Relief Program (TARP) is wreaking havoc on hundreds of small banks that took bailout money, according to a new report issued by the Congressional Oversight Panel. The COP oversees the $700 billion in bailout funds.
The final version of the financial reform bill that has become a central component of President Obama’s New Deal-esque program to enormously enlarge the powers of the federal government is on the brink of passage by the Senate.