President Bush spoke tonight regarding the status of the economy. He actually used the word Recession in as long as I can remember. In the past he’s talked about slow-downs, and tough times, but this is a first for him.
I watched a few minutes of his speech on CSPAN2, and then “watched” it through the comments over at Calculated Risk. The President read off the teleprompter like a robot and was very distant through the parts I watched. From the transcript, I’ve gathered that this is a typical George W Bush speech: very little substance and all mantra. However changed the message may have been from the previous economic messages of a ‘fundamentally sound’ and ‘very strong’ economy, it was still the same mantra of fear. Do this, or else something bad will happen. Don’t do that, or else something very bad will happen. Quickly pass the Bailout Bill or else there will be a recession!!
I guess his economic advisors (Bernanke and Paulson) have been lying to him as well. We are already in a recession.
We have also said that the eagerness to pass this measure is based on the faulty premise that this package will actually do something to solve the problem. It won’t.Trying to prop up assets at above market levels is DESTINED to fail, and worse, only digs us deeper in the debt hole in the process, making the ultimate resolution of our economic mess even more costly and painful
We are not alone in this view. Virtually no economist is in favor of the program (save Alan Blinder). University of Chicago even published an open letter with a long list of signatories against it. And commentary on econoblogs has been as close to unanimity as one sees in these parts against. it.
All it will do is provide a short-lived burst of confidence, then as market participants think through its operation and ramifications, the anxiety and stressed conditions will return. How long will the false euphoria last? Two weeks to six weeks, I’d hazard.
And worse, the existence of this program will block any other course of action being taken. It is so large and resource-intensive an approach that it precludes other remedies.
CR (of Calculated Risk) wrote his concerns that Bush’s speech might spark a deeper recession than the one we already have:
I’m not sure if this speech will motivate people to call their representatives, but it might motivate people that haven’t been paying attention to say: “Wow, this is bad. Let’s make sure our money is safe, and watch our expenditures.“ And that could lead to a deeper recession.
Further selected comments and thoughts from the comments in the two posts over at Calculated Risk:
Geoff writes:
Listen closely. He is gripping the podium so tight you can hear the mic pick up the noise. Scared witless.
John Gruber, of the blogger elite, picked up on this as well:
Bush’s podium poorly mic’d or what? All sorts of creaking/squeaking sounds, like a loose floorboard. Odd.
Geoff however, comes to a different conclusion:
Notice the noise again? When he is lying, he grips the podium tighter.
Commissar 4822 writes:
Assertions without data – even Nixon had nice charts and graphs
Anonymous quotes Senator Carter Glass, author of the Banking Act of 1933,
“Is there any reason why the American people should be taxed to guarantee the debts of banks, any more than they should be taxed to guarantee the debts of other institutions, including merchants, industries and mills of the country?â€
Saddam paraphrases:
If we do not invade Iran right now to find and destroy those Nucular-backed Securities, the world will end.
Get ready for bank run thursday….
They have no idea what they just unleashed….
Hope you got cash.
ChopperOne says:
Man, he couldn’t sell a Slurpee in a desert.
pastafarian explains:
I remember being told in 2000 and 2004 that if I didn’t vote for Bush, the country would go to hell. Well, I didn’t, and it did.
Jumping back to twitter for a few last comments:
Andy Diggle channels Jon Stewart:
How rabbit-in-the-headlights terrified did Bush look in that address? “I think I broke America. Will you buy me a new one? Eh-heh-heh-heh.”
Yellow_Dog’s sarcastic reply:
Bush warned Nation of a “long & painful recession” earlier today. Gee, thanks for telling us in time, Mr President.
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