Sep 27, 2008

150 Top Economists Say "Hold Off" on Bailout

`The situation may get urgent, but it's not urgent right now. Right now it's a financial sector problem....`It's just nothing like the calamity the administration is making it out to be.''

Everyone should stop the ignorant panic and read this article from the best economists, who like doctors are best apt to understand both the problem and its cure.

Another great interview and source to better information was provided by CATO Institute's daily podcast, a Sept. 25th interview with an expert on mortgage-backed securities.

Hoppy Kerchevel had an excellent interview with a professor of Economics at West Virginia State University which was very similar in perspective to this article here. SO WHY IS NO ONE LISTENING TO THE EXPERTS, INSTEAD OF THE FED'S FRONT MAN TREASURY SECRETARY PAULSON AND A IGNORANTLY-COMPLYING PRESIDENT? Who do you trust more about the economy, ignorant lawmakers or economists?

The media also (including local talk radio) continues to parrot the "crisis", after Bush's Financial WMD Speech Wednesday, where a virtual "mushroom cloud" was imagined over the economy if "Congress does not act now".

It is a gross exaggeration and even outright lie and the bailout would make things worse, according to experts!

clipped from
Hundreds of Economists Urge Congress Not to Rush on Rescue Plan

Sept. 25 (Bloomberg) -- More than 150 prominent U.S.
economists, including three Nobel Prize winners, urged Congress
to hold off on passing a $700 billion financial market rescue
plan until it can be studied more closely.

In a letter yesterday to congressional leaders, 166
academic economists said they oppose Treasury Secretary Henry
's plan because it's a ``subsidy'' for business, it's
ambiguous and it may have adverse market consequences in the
long term. They also expressed alarm at the haste of lawmakers
and the Bush administration to pass legislation.

``It doesn't seem to me that a lot decisions that we're
going to have to live with for a long time have to be made by
Friday,'' said Robert Lucas, a University of Chicago economist
and 1995 Nobel Prize winner who signed the letter. ``The
situation may get urgent, but it's not urgent right now. Right
now it's a financial sector problem.''