Saturday, May 17, 2008

Oil, credit crisis & the wider economy

Alan Blinder, an economics professor at Princeton University and former Federal Reserve vice chairman, talks with Bloomberg's Kathleen Hays from Princeton, New Jersey, about the impact of record oil prices and home foreclosures on the U.S. economy, the outlook for growth and Federal Reserve monetary policy.

As a Fed insider Professor Blinder can't admit that we're actually in a recession, but he certainly admits we are dealing with major, major problems.

1 comment:

Anonymous said...

Hi Randy;

As always, thanks for posting these videos on a regular basis. They are informative even though some of the speakers are so wrong!

One point of disagreement I have with Prof. Blinder is that, IMHO, the total of the 'rebate' checks won't do squat in this multi-trillion $ economy; it's like spitting in the ocean to raise the level. However, I do agree with him that our 'mall-cultured' Americans will go right out and spend it, but what comes next? Is the Gov't going to continue to rebate money to everyone? Gee, isn't this socialism, at least in the beginning stages? Add to that the 'nationalization' of banks, mortgage guarantors, etc., and one can certainly make a case that that's the road their taking. Just take a look at the "Sorry Three" that we have to choose from in November! Left of center? Hell, they're off the charts to the left.