Tag-Archive for ◊ david wessel ◊

When Will This Recession End, Mr. Bernanke?
Author: John Travis
• Tuesday, March 10th, 2009

That’s what David Rubenstein, co-founder of the Carlyle Group, asked Federal Reserve Chairman Ben Bernanke at a Council on Foreign Relations event today.

Washington Nationals third baseman Jose Castillo does his impression of the economy. (Associated Press)

Bernanke’s reply: “Well, my forecasting record on this recession is about the same as the win-loss record of the Washington Nationals.”

The Nationals’ season-ticket-holder elaborated: The recession “surprised us in being more severe than anticipated,” he added. So the answer to Rubenstein’s question “depends critically on our ability to get the banking system and the financial system more broadly, not necessarily back to 2005, but back to a situation where…the markets are reasonably stable, and they… can perform their critical function of providing credit to the economy.

“If we can do that,” he said, “then I think that there’s a good chance that the recession will end later this year and that 2010 will be a period of growth.”

The Nationals’ win-loss record for last season? 59 wins, 102 losses. –David Wessel

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Secondary Sources: Bank of America, Tax Cuts and Stimulus
Author: John Travis
• Monday, January 19th, 2009

A roundup of economic news from around the Web.

  • Bank of America’s Deal: Writing on his Basline Scenario blog, Simon Johnson looks at the government’s deal to aid Bank of America and remains critical of the government’s approach. “This is more of the same incoherent Policy By Deal that has failed to stabilize the financial system, while also greatly annoying pretty much everyone on Capitol Hill. Hopefully, it is the last gasp of the Paulson strategy and the Obama team will shortly unveil a more systematic approach to bank recapitalization; it would be a major mistake to continue in the Citi II/BoA II vein.” Separately, the Journal’s David Wessel discusses how well TARP is working on NPR.
  • Tax Cuts and Stimulus: Writing for the Financial Times, Joseph Stiglitz says tax cuts shouldn’t be part of the stimulus. “We are in uncharted territory in this crisis. But household tax cuts, except for possibly the poorest, should have no place in the stimulus. Nor should business tax breaks, except when closely linked with additional investment. The one tax cut that should be included is a temporary incremental investment tax credit; it provides a big bang for the buck, encouraging companies to invest now when the economy needs the spending. Increased investments in infrastructure, education and technology, relief to states, and help to the unemployed need pride of place.”

    • Compiled by Phil Izzo

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