As a libertarian minded guy, I was not "happy" about the implementation of the TARP program.
As a guy who has done a fair share of studies of US economic history and of previous economic downturns, I saw the necessity of it.
I wouldn't claim to be an expert per se, but anyone who has studies in any depth US econ history, and has looked at the near economic collapse of 1907, it becomes clear that, ultimately, in the absent of a figure such as J P Morgan, the govt had no option but to implement the TARP program. In todays economic structure, not only is there no one of Morgan's wealth and influence over the banking system, what Morgan did to stop certain economic collapse is almost certainly completely against many regulations and / or even the law today.
Also, as much as I appreciate Ron Paul's position on the futile wars in Iraq and Afghanistan (something I once foolishly supported), knowing what I know about 1907, his position on dissolving the Fed is absolutely nuts. Yes the Fed has (and keeps on) screwing up the economy by keeping rates at about zero (hello, anyone remember Japan's stagnant lost economic decade), but it can also act with speed to ensure cash flow and liquid assets remain in the economy. That is what Morgan was able to accomplish in 07.
As a libertarian minded guy, I was not "happy" about the implementation of the TARP program.
ReplyDeleteAs a guy who has done a fair share of studies of US economic history and of previous economic downturns, I saw the necessity of it.
I wouldn't claim to be an expert per se, but anyone who has studies in any depth US econ history, and has looked at the near economic collapse of 1907, it becomes clear that, ultimately, in the absent of a figure such as J P Morgan, the govt had no option but to implement the TARP program. In todays economic structure, not only is there no one of Morgan's wealth and influence over the banking system, what Morgan did to stop certain economic collapse is almost certainly completely against many regulations and / or even the law today.
Also, as much as I appreciate Ron Paul's position on the futile wars in Iraq and Afghanistan (something I once foolishly supported), knowing what I know about 1907, his position on dissolving the Fed is absolutely nuts. Yes the Fed has (and keeps on) screwing up the economy by keeping rates at about zero (hello, anyone remember Japan's stagnant lost economic decade), but it can also act with speed to ensure cash flow and liquid assets remain in the economy. That is what Morgan was able to accomplish in 07.