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marco: On Point: Where Is the Economy Heading?

Tom Ashbrook (Host): Have you ever seen a time of challenge like this in your long and storied career as an economist, Martin Feldstein?

Martin Feldstein: I have not.  I think the combination of problems that we're facing is unprecedented, and the extent to which our financial markets are dysfunctional is also unprecedented in my experience of about three decades of being a careful observer and a participant in those markets.

Tom Ashbrook: It scares the daylights out of me to hear you say that.  Does it scare the daylights out of you?

Martin Feldstein: It does.  It does.  I think it is a very serious problem.  And although the Fed has tried to do what it can, lowering interest rates dramatically, the Congress and the administration did what I and others advised, a substantial tax cut to try to get people spending some more... um, it hasn't worked.  And the danger is that the house price shrinking will continue to pull us down, and pull down the financial institution.

... all progress depends on the unreasonable mensch.
(apologies to G.B. Shaw)
by marco on Wed Jul 16th, 2008 at 09:21:53 AM EST
[ Parent ]
It would be unrealistic to expect Marty to bring up the problem of the concentration of the vast majority of the wealth into the hands of a small and increasingly mobile elite.  Saying anything about that, let alone doing anything about it, is left to "cranks and alarmists" such as yours truly, who can be dismissed.  At least he is not parroting the "All is well" meme.

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Wed Jul 16th, 2008 at 12:52:16 PM EST
[ Parent ]
That's quite a statement coming from Feldstein, though.

Be nice to America. Or we'll bring democracy to your country.
by Drew J Jones (pedobear@pennstatefootball.com) on Fri Jul 18th, 2008 at 07:54:08 AM EST
[ Parent ]


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