Dan Drezner, author of The System Worked, discusses how we avoided another Great Depression.

Category: Bailouts, Video

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

16 Responses to “The System Worked (?!)”

  1. Maseratij says:

    So the message is …Don’t “f: with the banking class. With benevolence the bankers saved the masses from the painful cure of our their own hubris. The status quo was maintained and all is well, “nothing to see here, move along now”. The status quo ain’t so good for me, I could lived longer on beans than the bankers could have had lived without jet fuel. I suspect there would have been greater general opportunity if the hard medicine was taken. A shake up usually suspends the heavier elements at the bottom. Incomes are lower today than before the Great Recession for most. If the jewish title is “It could have been so much worse” than the proletariat title is “It should have been so much worse”.

  2. Rob Dawg says:

    The “argument” is already over when one side accepts that the seven years ongoing costs of trading a “Depression” for a “Great Recession” plus $12 trillion was a “save.”

  3. DeltaV says:

    The fact, incontestable according to the US Treasury, is that Obama has added more to the US Public Debt than all other presidents combined. If as usual Barry Ritholtz you decide to deprive this information from your site then I will surely post it on Bloomberg. :)

    • RW says:

      The fact, incontestable according to the US Treasury, is that Obama inherited both the debt and the budget including its enormous deficit of his predecessor, George W. Bush and, against the resistance of the entire Republican caucus who wanted him to fail and the liberal wing of his own party who wanted him to spend much more, succeeded in reducing deficits at the fastest pace in the past 70 years while supporting businesses and conditions for a bull market.

      There, fixed it for you.

      • RW says:

        NB: The fiscal year for the United States begins Oct 1 and ends Sept 30 of the following year and a new president takes office in January of the year after they were elected therefore the first budget of any new president is actually the last budget set by his/her predecessor; i.e., Obama had nothing to do with the 2009 budget numbers.

        WRT 2009 and onward, increases in deficits due to automatic stabilizers are virtually guaranteed during an economic downturn and only congress has the authority to alter these; e.g., more citizens require and receive ‘social safety net’ services/funding and less revenue is collected for the same reason. The 2008 recession was the biggest economic contraction since the Great Depression and significant debt expansion could only be prevented by government shutdown probably followed by default.

        In the interests of full disclosure I am one of those who think that even although Obama inherited the largest debt and budget deficit in US history (up to that time), one virtually guaranteed to grow even larger for several more years no matter what he did, attempting to reduce deficits by his second year in office was a very serious error; i.e, his stimulus plan was (a) too small by half, (b) rather poorly targeted w/ too many tax cuts, and (c) the kind of ‘grand bargain’ he was negotiating with Republicans shook the confidence of anyone hoping for better.

  4. DeltaV says:

    In fact, Obama has been responsible for increasing the US Public Debt more than all other presidents combined. According to the US Treasury.

    I know I have already posted this to your site, Barry, and you have declined to published the truth as with other posts of mine. So i am taking a screenshot so everybody knows you have a political agenda that is not in favor of the US middle class…

    • Petey Wheatstraw says:

      How important can “debt” really be in a purely fiat, consumer credit-driven monetary system?

      Every debt denominated in $USDs could be settled with the stroke of a pen. Proof? The bank bail-outs.

    • Petey Wheatstraw says:

      Forgot: How can “Obama’s” debt be squared with that accumulated by, let’s say, George Washington?

      • Christopher says:

        Funny you mention GW….

        Writing to James Madison, George Washington observed:

        “No generation has the right to contract debts greater than can be paid off during the course of its own existence.”

        The “System” is designed to crush the 99%.
        From where I’m standing things look to be going right on schedule.

  5. Petey Wheatstraw says:

    Define “great” and “depression,” and maybe there will be a floor from which to begin a rational analysis.

  6. Moss says:

    The clause ‘unusual and exigent circumstance’ is the ace in the hole for the system.

  7. murrayv says:

    Delta V, Obama inherited the highest deficit since WWII. He has reduced the deficit at close to the fastest annual rate in history. Regretably, the cumulative deficit is still high, but the reason is the starting point, not the exceptional performance under this administration. Your observation may be numerically valid but is out of context and thus misleading at best. If you are going to make the point, make the whole point.

    • Petey Wheatstraw says:

      Obama has been responsible for increasing the US Public Debt?

      I’m glad to have learnt sumpin’ today. The President runs the press dollars are printed on. Congress’ job is obviously to do bupkis.

  8. pekoe says:

    Those who natter on about the deficit in the face of price stability and employment are like priests who endlessly predict the end times are nigh; they inspire fear among the fearful. The priests examine the entrails with great anxiety and then all rush to the door to kill all the virgins in advance. It seems like our financial crisis are a collapse in our common beliefs and expectations more than the size of the deficits themselves. You can see this in the slopes of the unemployment graph over time since 1950: the slope of rising unemployment is exponential, and the slop of declining unemployment is linear over time until it goes positive again with another exponential increase as all the priests rush out to kill the virgins fastest. It would be interesting to examine the slopes of rising unemployment in the first half of the last century when there were fewer entrails (government statistics) to look at. Seriously, we really might be better off with a little less information and transparency on the government stats, if people responded to things as they are rather than killing all the virgins in advance. Money is our greatest invented belief system, but its tough when you are a temple virgin.

  9. bsnceo says:

    Reading the comments here it appears that there are some people who might just say, “Dammit, it worked!”

    • Maseratij says:

      Yes exactly @bsnceo. There was an army of entrepreneurs and middle class professionals that could have picked up the pieces and reassembled them better than the status quo.