Rep. Shadegg: Bankers have not been calling Congress with concerns about tight money
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Economic Collapse Of 2008 An Inside Job
A Self-Fulfilling Prophecy: Congressman John Shadegg on the Paulson bailout:
David Freddeso: Is a bailout necessary to save the economy at this point from complete collapse - from a major failure of multiple institutions at the same time?
Shadegg: I think that’s the most difficult question that could be posed under these circumstances, and it’s the question that I have struggled all week to find the answer to. I have talked to a lot of smart people who know Wall Street, know banking, know the economy quite well, and you hear different opinions. Some will tell you that it is absolutely essential. Quite frankly, I’m skeptical about that.
But I think that in some ways the question doesn’t matter any more. Because Secretary Paulson chose to raise the matter in the way he did - that is, to go public in a very high-profile way, not just with his concern, but with a kind of Chicken-Little, the-sky-is-falling kind of demand - it became a self-fulfilling prophecy.
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Economic Collapse Of 2008 An Inside Job
A Self-Fulfilling Prophecy: Congressman John Shadegg on the Paulson bailout:
David Freddeso: Is a bailout necessary to save the economy at this point from complete collapse - from a major failure of multiple institutions at the same time?
Shadegg: I think that’s the most difficult question that could be posed under these circumstances, and it’s the question that I have struggled all week to find the answer to. I have talked to a lot of smart people who know Wall Street, know banking, know the economy quite well, and you hear different opinions. Some will tell you that it is absolutely essential. Quite frankly, I’m skeptical about that.
But I think that in some ways the question doesn’t matter any more. Because Secretary Paulson chose to raise the matter in the way he did - that is, to go public in a very high-profile way, not just with his concern, but with a kind of Chicken-Little, the-sky-is-falling kind of demand - it became a self-fulfilling prophecy.
--MORE--