President Bush argued Monday that the government’s dramatic rescue of Citigroup was necessary to “safeguard the financial system” and help the economy recover, and he said there could be more such moves if other institutions need help.
Bush said he approved the action, recommended by Treasury Secretary Henry Paulson, while flying back to Washington on Sunday evening from meetings in Peru with Pacific Rim leaders. He said he also spoke with President-elect Barack Obama on Sunday night, part of what he has promised will be “close cooperation” between his administration and the Obama camp.
Referring to the Citigroup rescue, Bush said, “We have made these kind of decisions in the past. We made one last night. And if need be we will make these kind of decisions to safeguard our financial system in the future.” Read the rest…
They say the definition of insanity is when you keep doing the same thing over and over and expecting different results… We can’t keep printing money and think we can inflate our way out of this crisis.
If you haven’t read Christopher Woods Op Ed “The Fed Is Out of Ammunition” in today’s Wall Street Journal you should. While I disagree with his suggestion that we return to the gold standard – not that it’s a bad idea, I just don’t think we can get that Gennie in back the bottle at this point… Woods does an excellent job of explaining why the current bailout circus is doomed to fail.