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-   -   Why? (http://cellar.org/showthread.php?t=18447)

Griff 10-16-2008 08:50 PM

Why?
 
Maybe this has been beat to death but I wasn't here to see it. Why did the Bush Administration simultaneously promise to pour money into the banking system and talk down the economy? I suppose destroying the economy is a good way to prevent the next administration from doing anything like nationalizing health care but they're nationalizing banking to do it. I've lost the ball on this one.:headshake

Pie 10-16-2008 08:57 PM

They've got a very hard balancing act to accomplish. They have to "prime the pump" -- ie. get liquidity back into the credit markets whilst simultaneously keeping public panic at a minimum to prevent a run on the banks.

That's why they seem to be speaking out of both sides of their mouths. Well, more so than usual.

Griff 10-17-2008 05:10 AM

To me it sounded like they were promoting panic and priming the pump.


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