expat_panama
Gold Member
- Apr 12, 2011
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Lots of people say that so you're in good company. Reality isn't voted on so it's still not true. OK, we did have a monetary crisis threatened by weakening credit in mid '08--...this isn't an economic crisis caused by bad economic policy. This is a monetary crisis caused by non-functional credit markets....
--so the Fed pushed for an expansion of the money supply with TARP. Credit stopped contracting within a year and the money supply growth resumed. TARP funds were paid back with a profit. Bid deal.
We also had a policy crisis with congress being taken over by Pelosi in '07. Calls for tax hikes and new regulation came with employment peaking and beginning a decline--
--which became a plunge with the overwhelming anti-business rhetoric, along with massive wasteful spending, industry wide expropriations, and tax hikes. Employment stopped falling in '10 with Pelosi's ouster and a softening of the rhetoric. Money supply has been back on track since early '10 but employment is still broke.