[E]verything the government is doing now is going to make the situation much, much worse. They’re trying to reflate this bubble. All along I knew that what would potentially be fatal wasn’t the recession itself but the government’s response. But what they’ve already done exceeds even my worst-case imagination.
I know it is only January but this is a real contender for ‘Samizdata quote of the year’.
i heard some politician say they wanted the banks lending at the same levels before the crisis. seems to completely ignore that the pre-crisis lending was supported by making bad loans and having balance sheets with too much risk.
Good point, McDuck! I think what they really meant was that they want banks lending at the same levels as before the crisis, but making good loans driven by profit instead of stupid loans driven by political correctness and the hopey-changeness of government bailouts. But they have no idea of how to get to the situation they want.
I agree with your judgement of the quote Perry.
I wish I had written it.