Excerpt: "Mr. DeMarco seems to misunderstand his job. He's supposed to run his agency and secure its finances - not make national economic policy. If the Treasury secretary, acting for the president, seeks to subsidize debt relief in a way that actually strengthens the finance agency, the agency's chief has no business blocking that policy. Doing so should be a firing offense."
Portrait, New York Times columnist Paul Krugman, 06/15/09. (photo: Fred R. Conrad/NYT)
Debt, Depression, DeMarco
03 August 12
here has been plenty to criticize about President Obama’s handling of the economy. Yet the overriding story of the past few years is not Mr. Obama’s mistakes but the scorched-earth opposition of Republicans, who have done everything they can to get in his way - and who now, having blocked the president’s policies, hope to win the White House by claiming that his policies have failed.
And this week’s shocking refusal to implement debt relief by the acting director of the Federal Housing Finance Agency - a Bush-era holdover the president hasn’t been able to replace - illustrates perfectly what’s going on.
Some background: many economists believe that the overhang of excess household debt, a legacy of the bubble years, is the biggest factor holding back economic recovery. Loosely speaking, excess debt has created a situation in which everyone is trying to spend less than their income. Since this is collectively impossible - my spending is your income, and your spending is my income - the result is a persistently depressed economy.
THE NEW STREAMLINED RSN LOGIN PROCESS: Register once, then login and you are ready to comment. All you need is a Username and a Password of your choosing and you are free to comment whenever you like! Welcome to the Reader Supported News community.