Dean Baker: "first time in US history President has sought to provoke financial panic"

[Hannah Bell]

This is the first time in the history of the United States that the president has sought to provoke a financial panic to get legislation through Congress. While this has proven to be a successful political strategy, it marks yet another low point in American politics.

It was incredibly irresponsible for President Bush to tell the American people on national television that the country could be facing another Great Depression. By contrast, when we actually were in the Great Depression, President Roosevelt said that, "we have nothing to fear, but fear itself."

It was even more irresponsible for him to seize on the decline in the stock market five hours later as evidence that his bailout was needed for the economy. President Bush must surely understand, as all economists know, that the daily swings in the stock market are driven by mass psychology and have almost nothing to do with the underlying strength in the economy.


http://www.cepr.net/index.php/op-eds-&-columns/op-eds-&-columns/statement-on-congressional-approval-of-bailout/

[phantom power]

1. Not too surprising, since he provoked a terrorism panic to pass IWR.

[OnceUponTimeOnTheNet]

2. kick rec

[amdezurik]

3. first time it worked for him

he tried to do the same thing for SS and got laughed at, this time he had a lots of dems helping him along to provide themselves with political "cover"...

[RufusTFirefly]

4. His shameless tactics are so frickin' transparent. At least for some of us. n/t

[David Dunham]

5. Baker does not understand the economic need for the bailout.

[Hannah Bell]

6. He's only one of the most well-known economists in the US - who's been more accurate than anyone

else I can think of in his prognastications over the years.

Yeah, he "doesn't understand". Go peddle it somewhere else.

[kayakjohnny]

10. Very few people, including those that matter, still understand what's going on.

I think the mass hysteria is still in control and no leader has yet emerged who can understand and articulate the details to a very disconnected populace.

[gravity]

7. There was already financial panic

that is why there was the need for the financial bill in the first place.

[Hannah Bell]

8. just keep telling yourself that. uh-huh.

[BlueEyedSon]

9. "The only thing we have to fear is not enough fear."

[chill_wind]

11. Deliberate incitement. Yelling fire from the center stage itself

in a millions crowded global theatre. Are there no laws for these acts?

[malaise]

12. And not one hack on M$Greedia called him on it

Indeed they bought the talking points and joined in the panic-mongering.

[chill_wind]

13. As they are very much part of the investor class. And enough cannot be said about that.

and their self-serving refusal to air much of anything but the Bush/Paulson Plan talking points.

I was listening to a local news channel reporter a couple days ago with her hair on fire; she'd been digging up every little local anecdotal story for days that you could find in any economic times, good or bad, and an interviewee who sounded a lot like Michael Moore (didn't see who, as I was listening from another room) was her guest.

Whoever he was, he really shredded her for her sudden "epiphany." He asked her "How much has YOUR LIFE changed?
What are you trying to tell us? Your ATM no longer works-- YOUR credit card has suddenly gone dry? What, you can't go out and buy another little $600 dress like the one you have on right now? You can't get you hair done now? How much did that hair-do cost you? How much? You're trying to scare people. Why now?"

She was livid and sputtering speechless.

[EFerrari]

16. The only thing they didn't do was physically jump of a cliff themselves.

:grr:

[moodforaday]

14. K&R

:kick:

[PATRICK]

15. Not the first time

the dynamic duo of Bush/Cheney trash talked the economy to provoke a recession that could be blamed on the Clinton watch. It was noted then but as usual not a single thing came of the observation nor did Bush succeed in punching the Dem market bubble faster. It took 9/11 on his watch to bring it down where no one was to blame.