Biden's test: Engineering economic boom in a partisan divide

This is easy: get control of the pandemic and the economy will fix itself.

During the first nine months of the Obama presidency, the unemployment rate climbed to 10% and the swift recovery that was predicted never happened as the country took years to work through housing foreclosures and rebuild its financial system.

This say's everything about that administration..

During the first nine months of the Obama presidency, the unemployment rate climbed to 10% and the swift recovery that was predicted never happened as the country took years to work through housing foreclosures and rebuild its financial system.

This say's everything about that administration..

Please get your history right. In late 2008 the US experienced the first absolute decline in the money supply since the early 1930s. Not just a decline in money supply growth but an outright decline in the money supply. Why? As the value of mortgage backed securities crashed and home values declined steeply, money and particularly the measure of the money supply once called M3 was destroyed. The US lost something between $16 to $20 trillion from the total money supply, equivalent to the GDP for one year. The US entered a deflation, TARP and the much maligned bank bailout prevented a catastrophic deflationary spiral from taking hold but deflationary pressures persist to this day. Because Congress refused to engage in fiscal stimulus the recovery took longer than necessary. In fact Congress was so stubborn about resisting fiscal stimulus the Federal Reserve took it upon itself to engage in monetary easing to stimulate the economy. It was a second best solution but all that was available to the US in the face of a recalcitrant Congress.

A return to growth once the Covid-19 pandemic is controlled will be more or less straightforward fiscal stimulus. This is a familiar and well worn path. The far more difficult task for Mr. Biden's final years of his term will be to find ways to increase revenues in order to start paying the national debt down. It is critical the nation does this, especially if the US ever wishes to bring its trade deficit down, but I don't see much appetite for the decisions required to achieve a balanced budget among either house of Congress or even much appreciation for the necessity to do so.

During the first nine months of the Obama presidency, the unemployment rate climbed to 10% and the swift recovery that was predicted never happened as the country took years to work through housing foreclosures and rebuild its financial system.

This say's everything about that administration..

The stock market was also at 6,000 or so. When he left in 2016 unemployment was at 4.2% and the stock market about 20,000. The republicans did not want QE because of inflation. There was no inflation. What an AMAZING job ! Never before equaled in just 8 years.

In late 2008 the US experienced the first absolute decline in the money supply since the early 1930s. Not just a decline in money supply growth but an outright decline in the money supply. Why? As the value of mortgage backed securities crashed and home values declined steeply, money and particularly the measure of the money supply once called M3 was destroyed.

Sure thing..and what is history behind that..could start with policy changes of the Clinton era which allowed such type of mortgage in the first place..the banks simply exploited this in every possible way, which finally resulted in mortgage backed securities crash in 2008..

Because Congress refused to engage in fiscal stimulus the recovery took longer than necessary. In fact Congress was so stubborn about resisting fiscal stimulus the Federal Reserve took it upon itself to engage in monetary easing to stimulate the economy

Nice spin, so why did the Obama administration refused to engage in fiscal stimulus ..the banks working with the Federal Reserve bailed themselves out..

ArtistAtLargeJan. 22  09:00 am JST

This is easy: get control of the pandemic and the economy will fix itself.

The pandemic is Number One right now and it's everybody's bag. Stimilus payments will help. Now that America has a civilized POTUS who has political expertise and experience ( eight years as Obama's VP), I think Joe will actually do his job and not set off unrest, play golf all the time or hide in a bunker like an irresponsible ninny.