Bender agenda: how it hurt US

[WhiskeyGirl]

Bender agenda: how it hurt US

Peter Hartcher Political Editor
November 11, 2008

(snip)

The American economy will not grow at all this year or next, says a board member of the US Federal Reserve, Richard Fisher, a much darker assessment than the Fed's official forecast.

..."Because the credit markets partied too hard and they are in the emergency room with alcohol poisoning - your readers will understand that," he told the Herald in an interview in the US.

Then, lest Australians suspect him of condescension, he added: "I'm half Australian."

He is president of the US Federal Reserve Bank of Dallas,...he has tremendous faith in the ability of the US to renew itself - as long as Congress does not make a mess of it.

...destruction is a necessary condition for re-creation, and Mr Fisher urged Congress to allow it to occur. He cited the fleet of 20 vessels in the ancient Greek tale of the Aeneid: "Only seven ships survived, the point being that we are going to have to let some people go."

...Mr Fisher warned Congress and the incoming president against spending too much: "We have to figure out a way to keep this an attractive place for overseas capital. You can't have capitalism without capital and capital has a choice - it can go elsewhere."

"It's a very tough decision for politicians to make, but America is the master of creative destruction; we have done it over and over. We will have a lesser number of ships, in terms of prominent companies, but we have to tolerate that and allow the economy to move upward along the value-added curve."

http://www.smh.com.au/news/national/bender-agenda-how-it-hurt-us/2008/11/10/1226165481829.html

How is the US going to pay for a new bailout?  The old bailout?  All those promises?  Maybe the non-capitalist system has some wisdom?