{"id":2278,"date":"2009-12-15T11:01:00","date_gmt":"2009-12-15T11:01:00","guid":{"rendered":"http:\/\/euvolution.com\/futurist-transhuman-news-blog\/the-political-aftermath-of-bailouts\/"},"modified":"2009-12-15T11:01:00","modified_gmt":"2009-12-15T11:01:00","slug":"the-political-aftermath-of-bailouts","status":"publish","type":"post","link":"https:\/\/www.euvolution.com\/futurist-transhuman-news-blog\/libertarianism\/the-political-aftermath-of-bailouts.php","title":{"rendered":"The Political Aftermath of Bailouts"},"content":{"rendered":"<p>The Obama administration is again pressing banks to increase lending, explicitly sugesting that banks \"owe\" the country because of the bailouts.&nbsp; Chief administration economist Larry Summers, for example, <a href=\"http:\/\/www.bloomberg.com\/apps\/news?pid=newsarchive&amp;sid=aU1ve48sEbZ8\">said<\/a> Sunday:<\/p><blockquote><p>&ldquo;We were there for them and the banks need to do everything they can to be sure they&rsquo;re there for customers across this country,&rdquo; Summers said in an interview on ABC&rsquo;s &ldquo;This Week&rdquo; program.<\/p><\/blockquote><p><a href=\"http:\/\/www.nytimes.com\/2009\/12\/15\/business\/economy\/15obama.html?hp\">Similarly<\/a>,<\/p><blockquote><p>President Obama pressured the heads of the nation&rsquo;s biggest banks on Monday to take &ldquo;extraordinary&rdquo; steps to revive lending for small businesses and homeowners, drawing a firm commitment from one large bank to make more loans and vaguer assurances from others.<\/p><\/blockquote><p>This kind of jaw-boning, with its implicit threats, is one crucial negative of the bailouts, and it will contaminate policy for a long time.&nbsp; <\/p><p>It is true that the banks benefited from taxpayer largesse.&nbsp; But they presumably have a reason now&nbsp;for their limited lending: they do not see profitable lending opportunities.&nbsp; If the administration bludgeons them into increasing credit, the banks&nbsp;will end up making bad loans that ultimately fail, creating yet another excuse for bailouts.<\/p><p>We made one huge mistake: the bailout.&nbsp; We should not compound it with another mistake: interfering with private lending decisions.&nbsp;&nbsp; Instead, we must lest the recovery take its course.&nbsp; And we should recognize that one reason for the slow recovery is private sector concern about incessant government&nbsp;meddling.<\/p><div><img loading=\"lazy\" decoding=\"async\" width=\"1\" height=\"1\" src=\"http:\/\/euvolution.com\/futurist-transhuman-news-blog\/wp-content\/plugins\/wp-o-matic\/cache\/98ebf_6379328854053402400-426137084057033129?l=jeffreymiron.blogspot.com\" alt=\"\" style=\"padding-left:10px; padding-right: 10px;\"><\/div>","protected":false},"excerpt":{"rendered":"<p>The Obama administration is again pressing banks to increase lending, explicitly sugesting that banks \"owe\" the country because of the bailouts.&nbsp; Chief administration economist Larry Summers, for example, said Sunday:&ldquo;We were there for them and the banks need to do &hellip; <a href=\"https:\/\/www.euvolution.com\/futurist-transhuman-news-blog\/libertarianism\/the-political-aftermath-of-bailouts.php\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"limit_modified_date":"","last_modified_date":"","_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[27],"tags":[],"class_list":["post-2278","post","type-post","status-publish","format-standard","hentry","category-libertarianism"],"modified_by":null,"_links":{"self":[{"href":"https:\/\/www.euvolution.com\/futurist-transhuman-news-blog\/wp-json\/wp\/v2\/posts\/2278"}],"collection":[{"href":"https:\/\/www.euvolution.com\/futurist-transhuman-news-blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.euvolution.com\/futurist-transhuman-news-blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.euvolution.com\/futurist-transhuman-news-blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.euvolution.com\/futurist-transhuman-news-blog\/wp-json\/wp\/v2\/comments?post=2278"}],"version-history":[{"count":0,"href":"https:\/\/www.euvolution.com\/futurist-transhuman-news-blog\/wp-json\/wp\/v2\/posts\/2278\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.euvolution.com\/futurist-transhuman-news-blog\/wp-json\/wp\/v2\/media?parent=2278"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.euvolution.com\/futurist-transhuman-news-blog\/wp-json\/wp\/v2\/categories?post=2278"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.euvolution.com\/futurist-transhuman-news-blog\/wp-json\/wp\/v2\/tags?post=2278"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}