Monday, August 15, 2011
Galbraith: "Stimulus Alone Was Never Going To Bring Recovery. This Crisis Was Caused By Financial Collapse, Rooted In Massive Banking Fraud. The Financial System Is Our Economic Motor And When It Fails It Cannot Be Revived Simply By Pouring Money On It, Any More Than A Wrecked Reactor Can Be Restarted Just By Adding Fuel"
Economics Professor Confirms that Fraud Caused the Economic Crisis ... And Stimulus Alone Won't Fix Anything
Economics professor James Galbraith writes in the Los Angeles Times:
In fact, stimulus alone was never going to bring recovery. This crisis was caused by financial collapse, rooted in massive banking fraud. The financial system is our economic motor and when it fails it cannot be revived simply by pouring money on it, any more than a wrecked reactor can be restarted just by adding fuel. Team Obama faced a situation not seen since the 1930s — a worldwide banking meltdown. The financial system needed to be rebuilt — and it still does. But Team Obama chose to overlook this.