Friday, February 27, 2009
A Steve Pearlstein Flashback
Steve Pearlstein – he of the no training in economics – has a column today calling on all of us to finally recognize the awesomeness of President Obama. We should do so for the good of the country:
“The essential insight of Barack Obama has been to see that these problems are inextricably linked. While his budget incorporates bold proposals to rescue the financial system, stabilize the auto industry, jump-start the economy, reform the health-care system and eventually bring down the federal deficit, he knows he's unlikely to win any of it if he cannot change the way business is done in Washington.”
And Steve Pearlstein knows “bold proposals to rescue the financial system”. August 2007:
"This is precisely why Fan and Fred were created, to provide liquidity to the mortgage markets when others fear to lend. So you would expect the Bush administration to work with them to expand their purchase of mortgages, and invite them temporarily into other areas, such as jumbo mortgages, where private markets are failing.
"Unfortunately, that would require the Fed and the administration, after having spent six years demonizing Fan and Fred and trying to reduce their size and influence, to eat a heaping serving of political crow. They would have to admit they were wrong when they said private banks could be relied upon to set lending standards and provide a reliable source of mortgage financing, in good times and bad. And they would have to acknowledge that giving Fan and Fred access to the government's backing might, in some instances, actually reduce the chance of a financial market meltdown, rather than increase it, as they so often predicted."
If I were a former member of the Bush Administration, I’d have that blurb front and center on my resume.
“The essential insight of Barack Obama has been to see that these problems are inextricably linked. While his budget incorporates bold proposals to rescue the financial system, stabilize the auto industry, jump-start the economy, reform the health-care system and eventually bring down the federal deficit, he knows he's unlikely to win any of it if he cannot change the way business is done in Washington.”
And Steve Pearlstein knows “bold proposals to rescue the financial system”. August 2007:
"This is precisely why Fan and Fred were created, to provide liquidity to the mortgage markets when others fear to lend. So you would expect the Bush administration to work with them to expand their purchase of mortgages, and invite them temporarily into other areas, such as jumbo mortgages, where private markets are failing.
"Unfortunately, that would require the Fed and the administration, after having spent six years demonizing Fan and Fred and trying to reduce their size and influence, to eat a heaping serving of political crow. They would have to admit they were wrong when they said private banks could be relied upon to set lending standards and provide a reliable source of mortgage financing, in good times and bad. And they would have to acknowledge that giving Fan and Fred access to the government's backing might, in some instances, actually reduce the chance of a financial market meltdown, rather than increase it, as they so often predicted."
If I were a former member of the Bush Administration, I’d have that blurb front and center on my resume.
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It's gotten to the point where if I find myself agreeing with something that Pearlstein has written, then I assume I made a mistake.
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