Wednesday, October 22, 2008

This is weird

The WSJ has a point. I don't recall anything like this ever happening, especially right before an election. Ben Bernanke effectively endorses the Democratic proposals for a stimulus package, that the White House is opposing.
While the Fed chief said any stimulus should be "well targeted," even a general endorsement amounts to a political green light. Mr. Bernanke certainly knows that Mr. Obama and Democrats on Capitol Hill are talking about some $300 billion in new "stimulus" spending, while President Bush and Republicans are resisting. And by saying any help should "limit longer-term effects" on the federal deficit, he had to know he was reinforcing Democratic opposition to permanent tax cuts.
I'm sure not this is helpful. It will piss off Republicans and can only contribute to the ugliness out there already. I'm telling you, the McCain supporters are already angry enough without adding fuel to their suspicions about the vast left wing conspiracy.

On the other hand, if he did because the market has been down two days running and he thinks it will help build a rally -- and it works -- then at least there would be that. [h/t Molly]

[More posts daily at The Newshoggers and The Detroit News.]


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Blogger (O)CT(O)PUS said...

What Paul Volcker said yesterday at Obama's economic conference should be more reassuring: After the crisis has passed, it will be the job of the government to sell off those assets acquired under the rescue program. That is what needs to be emphasized in order to take the "socialism" wind out of McCain's sails.

3:26:00 PM  
Blogger Libby Spencer said...

Actually I saw something somewhere yesterday that tracked historic bailouts and ultimately most of them returned small profits to the gov't.

5:51:00 PM  

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