GREY:MLKKF - Post by User
Comment by
bmann025on Aug 04, 2011 6:37pm
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Post# 18906085
RE: RE: RE: RE: bounce yet?
RE: RE: RE: RE: bounce yet?Hi LOZ,
while everything you wrote about ML was great, this is simply wrong.
True, Clintonomics reduced government deficit, but the extra income was generated by massively increased`personal debt. The total debt combined grew at then unprecendeted speed. It was a completely artificial boom.
The new policy under Clinton/Krugman was to fight each and every crisis with easy money.
Mexico crisis, Asia crisis, Long Term Capital Management crisis, year 2000 pseudo crisis and then the stock market collaps in 2000. Each time the markets were flooded and a healing recession was spared. And even Ninja credits were invented during this time. The financial sector's share of the economy scyrocketed.
You may blame some Republicans as well, as they had a majority in the Congress for some time under Clinton, but Bush inherited the stock market collapse and 9/11 happened right at the beginning of his first term, so he is pretty hard to blame for anything, except the Irak war. At that time, a 1929 style depression was already required to heal and rebulid the economy, but that was an absolute nogo after the attacks.
Obama, of course topped them all, being on the way to make more debt than all presidents before combined and the first billion to be saved now just equals the waste with QE2.