White House Economic Advisor: “More Jobs Will Be Lost!”
In an excellent article from the Financial Times, White House Chief economic advisor Larry Summers, indicates to reporters that more jobs will be lost and that the worst is probably yet to come! Summers also indicates in the article that while he was Secretary of Treasury under Bill Clinton, he was worried about predatory lending, and the stability of Fannie Mae and Freddie Mac! (If you can believe that!) These sueto-government mortgage agencies are the same two that destroyed the housing market due to a massive amount of adjustable rate mortgages to unqualified home owners. A little too late for regret wouldn’t you say!…An excerpt from the article is below…
“I think I always had the sense that our regulatory system was about the protection of individual institutions, and the important problems are often about the protection of the system. I was very worried in the 1990s about predatory lending, about systemic risk, about the stability of Fannie and Freddie. But the political constellation at that time didn’t offer a chance really to do more than report and warn about it. It’s a different world today. As Keynes famously said, ‘When the facts change, I change my mind.’”
Onward, then, to the toughest economic challenge Summers faces today: the recession. Here, Summers turns sombre: “I don’t think the worst is over … It’s very likely that more jobs will be lost. It would not be surprising if GDP has not yet reached its low. What does appear to be true is that the sense of panic in the markets and freefall in the economy has subsided and one does not have the sense of a situation as out of control as a few months ago.”
What I find interesting is that just a few months ago, Obama’s economic team was predicting a top end unemployment rate of 8% if their Democrat Stimulus Bill (porkulous bill) was passed. (You know, the same bill Nancy Pelosi pushed through the house for over 800 billion that not one single politician read!) Now, his economic team thinks the worst is not over and that more jobs will be lost – yet, they are still pushing for trillions in new spending on a massive health care initiative?!?!
I’m amazed at how many times government gets involved in the market in an attempt to fix some injustice, it always makes the situation more painful. Yet, over and over, politicians still try to control the economy as if they are a God send of economic ingenuity.
As a country we are facing an unemployment rate of 10%, with no real end in sight. A massive amount of government debt to the tune of 11 trillion. Why do we continue to allow are government to mingle in the market? Every attempt is almost certain disaster and usually another recession. Don’t you think it’s time to end government intervention, and let capitalism revive our economy again? This must see video below certainly shows how our buffoons in government have failed at regulating our economy!
Cheers Thinking Patriots,
Jason
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