Thursday, March 5, 2009
Nothing we do for banks is for banks. It’s all for the benefit of the people
"Nothing we do for banks is for banks. It's all for the benefit of the people that depend on banks -- the businesses, the families, the students -- that require credit in order to do things that are important to their future." --Treasury Secretary Timothy Geithner, PBS Jim Lehrer News Hour This isn't a normal recession. In a normal recession aggregate demand declines, economic activity slows, and GDP shrinks. While those things are taking place now, the reasons are quite different. The present slump wasn't brought on by a downturn in the business cycle or a mismatch in supply and demand. It was caused by a meltdown in the credit system's central core.