Posted by WARREN MOSLER on March 30th, 2009
No we don’t. We ‘get out of this’ with a fiscal adjustment sufficient to restore output and employment, and as credit worthiness improves lending picks up.
Banking is necessarily pro cyclical Tim, get over it!
by Ryan J. Donmoyer
Mar 29 (Bloomberg) — U.S. Treasury Secretary Timothy Geithner said that for the U.S. economy to recover from the recession, banks need to show more willingness to take risks and restore lending to businesses.
ÃƒÂ¢Ã¢â€šÂ¬Ã…â€œTo get out of this we need banks to take a chance on businesses, to take risks again,ÃƒÂ¢Ã¢â€šÂ¬Ã‚Â Geithner said today on the ABC News program ÃƒÂ¢Ã¢â€šÂ¬Ã…â€œThis Week.ÃƒÂ¢Ã¢â€šÂ¬Ã‚Â