Summers Criticizes Handling of Crises
Bush, Fed 'Behind the Curve,' Ex-Treasury Secretary Says
By Neil Irwin
Washington Post Staff Writer
Thursday, December 20, 2007; Page D01
President Bush and the Federal Reserve aren't taking aggressive enough action to prevent a recession, former Treasury secretary Lawrence H. Summers said yesterday, as Democrats ramped up their attacks on the administration's handling of the housing downturn and credit crises.
Summers, who worked in the Clinton administration, said the risk of a prolonged recession is higher than most economists recognize. He said it is "distinctly possible" that the nation will experience its worst economic conditions since the stagflation of the 1970s and severe recessions of the early '80s.
Lawrence Summers, who served under Clinton, advocates a temporary tax cut and rise in social spending.
"For the last year, the economic consensus, and the policy actions that have flowed from it, has been consistently behind the curve in recognizing the gravity of the problems in the housing and financial sectors and their consequences for the overall economy," Summers said in a speech at the Brookings Institution.
This must be where the Repugs are having heart attacks trying to get in line to denounce this guy as a tax and spend Democrat.
He has the spend part down anyway.
Anyway, I just wanted to point out yet another example of the warnings that have been coming down the pike on a regular basis lately.
All this deficit spending that Stupie McFuckwit has been doing that the DEMS have been shitting rings around themselves to give him, is going to amplify the housing and financial problems. Mark my words, this is going to get ugly and not go away.
The Fed hasn't got a handle on this and the finger in the wind crowd are starting to smell stink finger big time.
Of course that isn't going to help you or I.
The ones who are really going to get slammed are the working poor and the ones on the margins now.
In case you haven't heard, Food banks in this country are struggling from the economy already and have been begging for more donations since last summer.They can't hardly keep up with the usual holiday rush as it is. Just wait, there are going to be thousands of families facing real hunger that have always considered themselves middle class.
There ain't a middle class anymore.
It's us and them.