Sorry for the disappearing act. I was in the process of writing about other topics, but then I was sucked into the vortex of “OMG. What the heck is going on with our economy?” There was much research on what I thought they should be doing, much listening to the talking heads, a little of the “wow, my 401K has tanked - thank God I’m not retiring anytime soon”.
Plus, my husband and I bought a car and then went to Florida for the weekend. (No, not on the Great Schlep.) I was slightly concerned about the economy freefalling right when we needed a car loan, but it turns out that we were OK. *whew*
So instead of the other topics that I planned on blogging about, you will first get a little discussion of the economy. I’m not an economist, but I have several musings on the topic. I hope that you will enjoy.
First up…
For your listening pleasure, I have two excellent NPR interviews with Michael Greenberger, a former director at the U.S. Commodity Futures Trading Commission. Truthfully, I had to listen to them a couple of times, but this guy is excellent.
Our Confusing Economy, Explained
Fresh Air from WHYY, April 3, 2008 · Perplexed by the U.S. economy? You’re not alone. Law professor Michael Greenberger joins Fresh Air to explain the sub-prime mortgage crisis, credit defaults, the shaky future of other types of loans and what we can expect from the U.S. financial markets.
This is the one that I was listening to on my way home from physical therapy that kept me in the driveway for quite some time until they took a break and I could run into the house to continue listening to it.
Was ‘Adult Supervision’ Needed On Wall Street?
Fresh Air from WHYY, September 17, 2008 · The bankruptcy of financial services giant Lehman Brothers and the 500-point drop in the stock market on Sept. 15 have sent shock waves through the financial community. Michael Greenberger, a former director at the U.S. Commodity Futures Trading Commission, tells Terry Gross that the government’s decision to bail out AIG is a sign that the economy is “teetering on the brink.”
“The Fed and the Treasury are very, very worried about the stability of the economy,” Greenberger says. “They’re worried about what this means to Main Street, about what it means to you and me. … In the absence of this rather dramatic move I think they believe that we would enter something much deeper, possibly, than a recession.”
If AIG had failed, Greenberger says, the average citizen’s savings accounts and checking accounts could have been in jeopardy. But he warns that the bailout is a “50-50 proposition” and that other banks might follow.
Greenberger insists he is not a pessimist about the economy; he says that “intelligent leaders” — coupled with government aid, transparency and regulation — can enable the American economy to transcend its current troubles. But he has harsh words for the companies that were engaging in questionable practices — and for the government that turned a blind eye to the potential consequences.
Greenberger asserts that the fact that there was “no adult supervision” of Wall Street will cost the American public in the long run.
“The $85 billion will come out of the United States Treasury. And either we’re going to fund that from China or you and I are going to have to pay for it through taxes,” he says. “[As] a lot of people are saying now: We privatize profits; we socialize losses.”
They are both great, but if you had to listen to one, listen to the last one. It is enough to make you want to have Superman come in, turn back time, and let you burst into Congress in Dec 2000 and say stop!!!!!!!!
