How We Ended the Great Recession – White Paper on The Great Depression 2.0

I found this little gem over at washington’s blog

And Alan Blinder (economist, banking consultant and former Vice Chairman of the Board of Governors of the Federal Reserve System) and chief Moody’s economist Mark Zandi wrote a paper yesterday called How We Ended the Great Recession:

A source on Capitol Hill sent this to me, telling me that the paper is making the rounds on the Hill.

In the paper, Blinder and Zandi congratulate the Bush and Obama administrations for saving us from the Great Depression 2.0:

Eighteen months ago, the global financial system was on the brink of collapse and the U.S. was suffering its worst economic downturn since the 1930s. The Great Recession gave way to recovery as quickly as it did largely because of the unprecedented responses by monetary and fiscal policymakers.

In other words: “Mission Accomplished”.

Um, really?

Ended the Great Recession?

Maybe for the super elites but not for the rest of us…

Anyway, kind of speachless on this one…

We ain’t seen nothin yet…

Feel free to check out the white paper below…



How We Ended the Great Recession

2 Responses to “How We Ended the Great Recession – White Paper on The Great Depression 2.0”
  1. I don’t think the average Congressional Representative is aware of this entire fiasco. We need a form letter sent in mass to call it to their attention. It has to be from a constituent from their District. Until we began to give our DC political reps the details they had no idea how serious this was or the links. I think we all assume Washington is aware… apparently not all of them. Maybe its time to email, letter and phone campaign and demand an investigation. I think we need to force a moratorium on foreclosures. They’ve done it before in the Great Depression era… We have a chance to save this disaster before its another Enron that just leaves people with an empty loss, no savings, no pensions – and a “too bad” attitude from the government.

    If we want to save the pension funds (investors), among other things… put a moratorium on foreclosures and a Receivership on MERS… take over the loan modifications – do them through the government. It is not hard to restructure loans. We look at the borrower’s history – (before) predatory lending; we look at the fair market value (today) MLS comps and county assessment values; we evaluate the ability to repay the loan at a 2% mortgage for 30 yrs and the government (like USDA) writes the new mortgage and records it through the regular land recordation process. It’s a hell of a lot better than giving the banks another trillion dollars to settle lawsuits for fraud.

    If we demanded that the government take over the foreclosures – you see a lot more bank modifications and new loans before it got to that stage.

    But this takes a movement – a mass of emails, letters and phone calls to every single Washington, DC Congressional Representative and US Senator – and let them know we expect a reply… and it may take a demonstration on Capital Hill. Maybe its an anti-trust suit filed in every state on the same day to make news…but it took some very smart people to figure this out – and you’re still putting the puzzle together, we can’t assume that everyone understands it – so we need to spoon feed it together – in an organized group – in mass.

  2. Michael says:

    “Thus, the odds of a national economic downturn are high. I don’t think we’ll experience one. I think we have some fundamental strength that will eventually win the day, but a bit dicey over the next three, six months.” – Mark Zandi, Oct. 7, 2007, CNN.

    “The last duty of a central banker is to tell the public the truth” – Alan Blinder. PBC Nightly Business Report, 1994.

    Anybody who thinks the Fannie/Freddie/AIG bailout will make money for the Treasury, that these bailouts didn’t exacerbate economic woes (including foreclosures) for the overwhelming majority of American’s, or that the Depression is over should buy some DJSP (Stern) stock.

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