As in all past crises, at the root of the problem is a loss of confidence by investors and the public in the strength of key financial institutions and markets. This has had cascading and unwelcome effects on credit availability for households and businesses, and on the value of savings. Under these circumstances, steps to restore confidence in our institutions and markets will go far toward resolving the current market stress. Our economy will not be able to function at its best unless and until financial market stability returns. The bold actions taken by the Congress, the Treasury, the Federal Reserve, the Federal Deposit Insurance Corporation and other agencies, together with the normal recuperative powers of the financial markets, will lay the groundwork for financial and economic recovery.
The most immediate responsibility of policy makers and elected officials is to restore confidence in our credit markets. Even as we do this, we must begin to consider long-term reforms that will mitigate similar crises in the future. A comprehensive review of our regulatory structures is an essential task in the coming year. The events of the past year or two have highlighted regulatory gaps and deficiencies that we must address to improve the structure of our markets and the resiliency of our economy. As we recover from the current crisis, it will be important to address these issues as soon as possible, to develop a regulatory structure that will better respond to future economic challenges.
Policy makers here and around the globe have taken a series of extraordinary steps. Americans can be confident that every resource is being brought to bear: historical understanding, technical expertise, economic analysis and political leadership.
They are laying the groundwork for another boom-bust cycle.
You must understand that some people make an amazingly large income from every boom-bust. They are the ones in charge.
Don
“As in all past crises, at the root of the problem is a loss of confidence by investors and the public in the strength of key financial institutions and markets.”
Nope. I disagree completely. The problem is not a loss of confidence; it’s crippling debt load. We have just plain been too greedy. I am not going to pretend to confidence when there’s no basis for it.
We don’t trust congress, wall street, Obama or McCain….and teh last thing we trust is the federal government to take over our banks…that is the problem
A huge BINGO!!
#1
“You must understand that some people make an amazingly large income from every boom-bust. They are the ones in charge.”
Indeed. Purchasing power is transferred upstream to early dollar recipients from later dollar recipients. This is theft from our children and children’s children. Homeowners who over-leveraged lose their homes and declare bankruptcy–as every suit-wearing MBA on Wall Street will tell you they should. But when these same suit-wearing MBA’s over-leverage, they weep great crocodile tears and tell the rest of us we are in a [i]crisis[/i] and we must, [i]must[/i] have new money from Uncle Sugar.
#1.
In my opinion, they are doing much more than laying the groundwork for another boom-bust cycle, they are laying the groundwork for a global economic New Deal. How are we going to like it when American businesses operating in America have to adhere to regulations set up by an international agency. I, personally, have no interest in being part of a New Economic World Order. I happen to like American sovereignty as I’m sure most Americans do.
Now, at the risk of sounding like a broken record, citizens need to express their feeling about what’s going on in Washington by voting against their representatives in the House and Senate who voted for the bailout bill. Talk is not enough. Action is needed and the most effective action we citizens can take is with our vote. It’s the only way the politicians will understand that the American citizens are angry fed up and totally disgusted. Only when politicians see that we will express our anger with our votes will they change.