The President’s chief economic advisor Larry Summers, who just the other day said the economy was rebounding because people were googling “economic depression” less, now says the President’s GDP growth predictions are “in doubt.” Economists have been skeptical as many have been since… the… beginning.
Summers reasoning as to why they are in doubt? Banks aren’t lending. Shocker there, we’ve had no evidence they ever would. WORST of all though, the Chief Watchdog of TARP is astounded and appalled that the Treasury isn’t paying any attention to how the financial institutions are spending the money we gave them. Why would they lend? They can use the money however they want and apparently no one is watching.
Finally, I have a question. If Summers claim that the banks aren’t loaning as they were supposed to, why then do we keep giving them more money?
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