Friday, May 07, 2010

I still respect the opinions of Paulson, Bair and Bernanke.

While reading this article on Housing Wire this morning, I remembered how strongly I believe these three understood the crisis and that they were right about TARP.

TARP was a risky move that went way beyond what they would have like, in my opinion but I believe they felt it was a necessary step to calm the markets. I agree.  What they and I failed to see was that TARP was a peek at heaven for ignorant politicians.  If they had been able to control and limit the outcome, then the medicine prescribed by these three financial doctors would have been risky but necessary and we'd have just moved back to some sort of normalcy.

Once economically ignorant politicians realized just how easy it was to spend borrowed money under guise of disaster recovery, all hell broke out and now we have a much more serious long term problem even while the economy is recovering.  I do some strongheaded learned candidates of both parties step up, run and win so we can fix this mess before we look like Greece.

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