Bernanke's Trillion Dollar Decision

Politico ^ | 10/24/2009 | Eamon Javers

[fiscon1]

The biggest decision of the economic recovery will be made in the next six months, and Barack Obama will have almost nothing to do with it.

Forget the debate over TARP, and never mind the questions about a second stimulus. This decision is about when to pull out $1 trillion that’s propping up the U.S. banking system. And it will be Federal Reserve Chairman Ben Bernanke and his Fed colleagues who make the call

[driftdiver]

but the recession is over

[MNJohnnie]

with largely saving the United States from plummeting into an economic depression

Typical puff piece from the Leftist at Politico trying to inoculate Dear Reader and the Democrats from the political consequences of their actions. With Democrats in power, Leftist PR agents like Politico are desperate to obfuscate the fact that despite the Democrats attempts to micromanage the economy we did tumble into and are still in, a depression.

[RayChuang88]

Mr. Bernanke, there is something like US$15 TRILLION in American-own liquid assets either participating in the underground economy or sitting in offshore financial centers located beyond the US border, all done for income tax avoidance reasons. How about fixing our income tax laws so it encourages Americans to keep their personal savings and capital investments in the USA, which will bring back most of that US$15 trillion, providing a gigantic liquidity boost that recapitalizes many distressed companies and and providing a liquidity base for new loans and lines of credit so necessary for real economic recovery?

[TurtleUp]

Forget the debate over TARP, and never mind the questions about a second stimulus. This decision is about when to pull out $1 trillion that’s propping up the U.S. banking system. And it will be Federal Reserve Chairman Ben Bernanke and his Fed colleagues who make the call

The private investors who OWN the private capital in our economy will pull out as much of their own capital as they can if the federal government doesn't stop meddling. That will do as much damage as if the feds pulled out our tax dollars, but without getting the government out of the problems they have created. Bernanke pulling out the artificial supports is by far the least damaging option available.

[Tublecane]

“This decision is about when to pull out $1 trillion that’s propping up the U.S. banking system.”

Are you kidding? It’ll never be pulled out. Not on purpose, anyway.

[paul51]

This decision is about when to pull out $1 trillion that’s propping up the U.S. banking system

Odds are better they will be putting in another trillion