Big admission from Vice President Joe Biden today.
“The truth is, we and everyone else misread the economy,” Biden told me during our exclusive “This Week” interview in Iraq.
Biden acknowledged administration officials were too optimistic earlier this year when they predicted the unemployment rate would peak at 8 percent as part of their effort to sell the stimulus package. The national unemployment rate has ballooned to 9.5 percent in June — the worst in 26 years.
“The truth is, there was a misreading of just how bad an economy we inherited,” said Biden, who is leading the administration’s effort to implement it’s $787 billion economic stimulus plan.
“Now, that doesn’t — I’m not — it’s now our responsibility. So the second question becomes, did the economic package we put in place, including the Recovery Act, is it the right package given the circumstances we’re in? And we believe it is the right package given the circumstances we’re in,” he told me.
The vice president argued more time is needed for the stimulus to work.
“We misread how bad the economy was, but we are now only about 120 days into the recovery package,” he said. “The truth of the matter was, no one anticipated, no one expected that that recovery package would in fact be in a position at this point of having to distribute the bulk of money.”
Everyone misread the economy? I think not.
Read the transcript of the interview.
#25 If you understand how the money supply works, stimulus is the only answer that is available to us right now.
Banks are in trouble, and are not making loans. No loans means, no new money, means contracting money supply, leading to deflation. If the banks cant generate money, the government has to. The threat of “hyperinflation” is not coming when we are in a deflationary recession.
Anyone who thinks the current economic is Obama’s fault has to be smoking something. What we are now seeing is the results of policies that have been going on since Reagan, and Clinton did little to change the policies. We have to use all the tools we have to fix the issues. Stimulus is just a band aid, true, but its about all we have.
# 31 ArianeB said, “#25 If you understand how the money supply works, stimulus is the only answer that is available to us right now.”
Actually, no. It is a very inefficient “tool”. Funneling $ through an inefficient & wasteful gov’t rather than just letting business & citizens keep more of their own $ (and thus spend directly) is really stupid. FDRs & his Admin discovered this fact after 6 years of “stimulus”…
Americans are still coming to terms with the magnitude of despair created by the Cheney/Bush regime.
It is unprecedented and only government has the wherewithal to get us out of this hole.
In the mean time, the GOP is focused on self preservation first, America last.
#30, As a usual Obama appoligists you blame Bush for everything. Guess what Bush is no longer in charge, and hasn’t been for a while now, unemployment is still heading up thanks to Obama’s record spending. The problem is you are so in love with Obama that you can’t comprehend that he screwed up, and you did to by voting for him. You may be able to blame the rescission on Bush, but the Depression we are in is the Fault of Obama.
I said before the election that Obama would be a disaster not because I liked McCain or Bush, but because voting for someone not because you believe in their policies but because you hate the other guy never turns out well. Now my prediction is coming to pass.
#25, chuck,
Yes the right wing nuts like to invent crap, so please explain where you came up with these calculations?
The first stimulus (from Bush in October) was several hundred $billion and did nothing. Then we had a $trillion stimulus.
A link would be nice.
#27, cranky,
NOBODY believed those numbers. Even liberal commentators and pro-stimulus economists admitted at the time they were pushing the stimulus package that the numbers they were using were overly optimistic.
Unless you can provide something to back that up I have to say bullshit. Can you link to , oh, say three liberal commentators that claimed these numbers were wrong?
And who the eff is Clark Howard and why should I care?
Either the administration knew the numbers were overly optimistic and wanted to sell their plan, or they are less intelligent than the previous administration.
Or they were hoping to get the Stimulus Bill passed through Congress. A larger bill might not have made it.
Being “less intelligent” than the previous Administration is laughable. Bush waited until the harm was already done before he even tried to do anything. He hid the extent of the damage from us until it all collapsed on our heads.
#27 Fusion,
There you go again, wanting people to do your work for you. Sorry – I know aren’t open to changing your views even if I do, so why waste my time? If you had been paying attention at all when the stimulus was being pushed, you would have heard the same things I did. All of the Sunday morning political shows were saying the same things.
Bush’s SAT score was higher than John Kerry, so I don’t think it is laughable that it is also higher than Biden, who graduated almost last in his class. If you judge people by their actions – sorry – the current administration does not look any smarter than the previous one.
Don’t blame the politicians! They sold the values and the citizens bought them. Let’s face it, they’re bred to be competitive, aggressive, and greedy. From very young they get it drilled into them that a winner is a guy with a big house(s), a big car(s), a beautiful wife, and all this comes from money. The loser is the guy that lives in a trailer park, has to work two jobs just to survive, and has no hope of finding a woman cause he’s too tired after work. And god help the poor loser that get’s a injured or has a severe illness, since he’s a loser he doesn’t deserve decent health insurance.
A society that has no social values is doomed to become an unliveable hell for most, then comes revolution.
He’s supposed to listen to Krugman? Krugman misread the economy as well. I don’t think they “misread” it as much as simply being shills for the state.
Krugman:
“In time this overhang will be worked off. Meanwhile, economic policy should encourage other spending to offset the temporary slump in business investment. Low interest rates, which promote spending on housing and other durable goods, are the main answer. But it seems inevitable that there will also be a fiscal stimulus package”
August 16, 2002
“4. We may have a stock bubble, but we don’t have a real estate bubble.”
Krugman admits if we do have a bubble, and it goes bust, we’ll be in a lot of trouble:
“If we do have a housing bubble, and it bursts, we’ll be looking a lot too Japanese for comfort.”
Yet he wants to pump up the bubble anyway?
“And yet the Fed chose not to cut rates on Tuesday. Why?”
Ha, ha. All politicians lie all the time and then the idiots take sides.
VOTE ALL INCUMBENTS OUT OF OFFICE.
Wow, looks like Stephanopolous is all grown up! 🙂 and he looked like he wasn’t buying what Biden was cooking!
That alone was worth watching. 🙂
So far, the comments on this topic are missing the main point. There is a reason the Vice-President Biden can (in his own mind) honestly state that “everyone else misread the economy”. It is because he, like all politicians, believe that people who do not support his positions are Un-People, who are not to be noticed or considered. With capitols filled with men and women like this, how could our government (formerly a republic) not be in such terrible shape?
#37, cranky,
There you go again, wanting people to do your work for you. Sorry – I know aren’t open to changing your views even if I do, so why waste my time?
I challenged you to post three names that said the Stimulus package wasn’t enough. You waste your time posting stupid comments with no facts.
If you had been paying attention at all when the stimulus was being pushed, you would have heard the same things I did.
In December through February the loud talk was all anti-stimulus from the right wing nut crowd. And it hasn’t let up since. That you now try to spin it the other way just shows the moral bankruptcy you and your ilk have. Read some of Alphie’s rants about how Obama is bankrupting the nation to get an idea of what the right wing nut crowd has on their minds.
Bush’s SAT score was higher than John Kerry
I don’t know. You neither post the numbers or link to the numbers. So, that means your claim is bullshit. While it appears Bushes SATs were posted on-line, Kerry’s are not. Besides, SATs are not a measure of intelligence.
I do find it interesting that you revert to something unprovable to counter an indefensible claim that Bush created the recession we are in.
the current administration does not look any smarter than the previous one.
Another ad hominem. The current Administration is doing something. The previous not only killed the economy, they continued to do nothing except blame Democrats for that failure.
#37, yoshi,
Krugman misread the economy as well.
Another incredibly stupid comment. If you can’t link or cite where you got your quotes then they are just more bullshit.
August 16, 2002
“4. We may have a stock bubble, but we don’t have a real estate bubble.”
OK, at least you gave a time frame. But what else did he have to say?
BTW, the Real Estate problems didn’t start happening until 2005 when Bush slacked off on the oversight and derivatives became even more popular.
It appears you have taken old statements by Krugman and tried to apply them to today. It doesn’t work like that.
Outside looking in… You can’t blame Bush and you can’t blame Obama. The whole system of government from state to federal is fucked up big time. The only way to fix this and future economic messes is to revamp the whole system. Throw away the party system and start fresh.
If it weren’t Biden making this announcement it would have been a Republican telling lies and trying to save face. Your current system fosters obstinate, bias, self serving and even criminal behavior in the public AND private sectors. Two sides constantly in a pissing match… and NEITHER ONE with the ability to create a long term plan that actually works and progresses to a better future overall. Why don’t you all get on the same side? Do away with the labels and put the extensive knowledge at your command to work… in this case the thousands of economic experts in the private sector that could have avoided this catastrophe in the first place if they were an intricate source of government planning.
It’s doable, but first you have to let go of the past. This isn’t 1791 and a population of only 5 million any more, and but many of you act like nothing has changed… from gun toting to video surveillance.
# 44 Mr. Fusion said, “BTW, the Real Estate problems didn’t start happening until 2005 when Bush slacked off on the oversight and derivatives became even more popular.”
Being from Canada you wouldn’t know this but, real estate prices were grossly inflated by 1999. The peak was ~’05.
This stupid bastard couldn’t find his ass with both hands and a flashlight if his life depended on it.
#43 Fusion
You are funny. The king of ad-hominem attacks is accusing me of ad-hominem attacks. Obama did exactly what the republicans would have done with the stimulus, though probably on a slightly larger scale due the bundling of the pet projects inserted in the bill that democrats have been pushing for for years. If you think the stimulus was a good idea, and the numbers he used were accurate, then either Bush is smart because he was pushing it as well, or Obama is a liar or not that smart.
If you really want to know the names of 3 liberals who admitted the numbers Obama used to push the stimulus package were overly optimistic, I can look that up for you after work.
As for your other rants, I am not sure if they are worth addressing, but if I am going to waste time looking up things for you – why don’t you list 3 things that Bush did to create the housing bubble.
I could care less if you say bad things about Bush, but despite his many other failures, I did not see him doing things that contributed to the credit bubble. I am actually open to hearing arguments that he did something to cause it, but I have not seen any real arguments yet. I know he was busy wasting our money in the war and pushing for amnesty for illegal immigrants, but I do not recall him spending time pushing for easier loans.
ohh, higher minimum wage is set to kick in soon also. That should really help the employment figures.
Hey Fusion==there are 4-5 economists mentioned with some quotes in the linked article (“think not” at the end of the header) that stated what we all should remember: The criticism of Obama at the time was some thinking he should let the banks fail, some thought his stimulus package should be much bigger. I think its fair those who thought the stimulus should be bigger is consistent with Obama’s position that he was doing enough–ie–he was using numbers that were too optimistic.
And Cranky==One could say that every day was one more example of Bush doing nothing to prevent the banking/credit crises. Life Guards are responsible for drownings when they don’t pay attention–no need to actually hold someone’s face underwater.
By memory, Bush publicly stated that the Fannies needed more oversight, he got pushback from Frank, and he let the issue go. He also allowed the passage of legislation repealing Stiglits-Seagal (sic) that repealed the prohibition of investment houses acting as banks which meant they were “in banking” but not restricted/overseen by the banking regulators. This allowed the 40-50-60 to one leverage when Banks were limited to 30 to 1. SO==yea, more than any other one person, BUSH the RETARD is responsible for our current mess.
Obama can be blamed for not fixing Bush’s mess but thats a whole lot of different evaluations.
#52, the Gramm-Leach-Bliley Act, which repealed the parts of the Glass-Steagall Act you refered to, was passed in 1999 and signed into law by Bill Clinton.
Hey Bob #30 Here…
I’m not an Obama Lover…Just a Bush basher!!! And 5 monthes in office what are YOU talking about his fault!!! The Whole thing started to go to hell back in sept last year, when your Fearless Leader was still at the helm..
I disagree with all the spending… I disagree with allot of Obamas Policies, but I believe that Bush harmed this country in ways we still cant calculate!!! And That was My Point!!!
I actually Voted For Bush the first time around.. I was a Republican… Now I am a realist!! The Republicans only care about themselves…or atleast the Politician Brand of republican.., And If Bush Cheney was the best you could offer the world…..Hmmm… When Dubbya took over the books were balanced… so explain to me now…???
And i dont want to hear a word about the War on Terror… another Trumped up Republican pile of Crap that has tarneshed our countries image.. “If ya Aint With us…bla blah blah..” and “Mission F’d Up…Not Accoplished” Mate!! 🙂 And if it wasn’t for a few relatives in Florida we would have gotten rid of him in 2004!!
#53–SL==thanks for the correction. I would never post something knowing it was wrong. Was it poor memory or bias? You had a chance to ream me deservedly, and you let it pass. You exceed the highest mark of Sea Lawyering. Didn’t Bush sign some law that lessened regulatory safeguards???? No? Just failed to enforce what little there was huh?
#54–riding==I read about 1/3 of your post #30, I get bored and suspicious reading anything I agree with. I think you need to read more than one of my posts. Or not, even the one you take off on doesn’t support what I think you are saying. Am I that sleepy?
#56–Alfie==gee, at first I thought someone was posting under your name again. It made sense before you went off track.
So, under the free market system, why do you think the majory/main stockholder of/lender to a company shouldn’t be setting limits on profit and bonuses? When you rob the bank and get caught, you don’t get to keep the money, except under your definition of free I guess.
Just go to http://market-ticker.denninger.net/ to get the real scoop on the state of the economy. Denninger got me out of long positions in the market back in October 07. The guy knows his stuff. Don’t listen to the Mr Con-Fusion jerk… He’s a moron.
Watching the video, try as I might, I couldn’t come up with anything other than, “Well, duh.”
#52, Bobbo,
The criticism of Obama at the time was some thinking he should let the banks fail, some thought his stimulus package should be much bigger.
Uummm, the right wing nut crowd had been screaming we needed to reduce taxes. There was very little comment about making the Stimulus Bill larger as the loud wing nut set: FOX, Limbaugh, Hannity, Alphie, et al were totally against the package. Many democrats only voted for the bill through arm twisting.
Yes, there was talk about letting the banks fail. That though is a second point and was loudest from September to December. It was also the same crowd yelling how bad the Stimulus is.
Obama’s position that he was doing enough–ie–he was using numbers that were too optimistic.
The political reality is that if the Stimulus was larger then it would never have passed. Remember, Congress had seen $350 Billion used in TARP funds that they couldn’t get answers for. Many Americans were not too happy with TARP and a sizable number were against any stimulus. Also at the time, Obama did say he might have to come back for more stimulus funds.
Bush publicly stated that the Fannies needed more oversight, he got pushback from Frank, and he let the issue go.
Right wing nut propoganda. Bush wanted to remove oversight to the White House through the Treasury. Even though the REPUBLICAN Finance Chairmen in Congress (Barney Frank had nothing to do with this) dropped the bill, Bush still pushed a lot of toxic assets on the Fms.
BUSH the RETARD is responsible for our current mess.
A fact the right wing nuts are in denial about. The loudest right wing nuts though want the stimulus to fail. They would rather America fail so they can be proved right.
#49, slightly,
Obama did exactly what the republicans would have done with the stimulus,
Wrong. The Republicans sole plan was to cut taxes. Even several months later, they have yet to come with anything other than cut taxes. They even had a big press conference to announce their policy, complete with an 18 pg book with nothing in it.
Bush is smart because he was pushing it as well,
Bush was mute during the whole thing. To some he appeared completely overwhelmed and even shell shocked. He let Treasury Secretary Paulson do all the talking and that ended up being “we’ll wait for the Democrats to take over and do something”.
If you really want to know the names of 3 liberals who admitted the numbers Obama used …
You claimed many were so it shouldn’t be difficult.
Me? I don’t have an opinion as I don’t have access to all the numbers and I am not a professional economist. Those that call Obama and Biden liars because of they were optimistic are most likely very short sighted themselves.
why don’t you list 3 things that Bush did to create the housing bubble.
Nope. Wrong topic. Typical right wing nut attitude is to change the subject.
I did not see (Bush) doing things that contributed to the credit bubble.
Then you are blind. It was the lack of oversight by the OCC, Thrift, SEC, and Treasury, among other Departments that allowed the banks to hold so much toxic assets. When the warning signs came that people that should not get credit were getting it, he didn’t warn Congress. In February, 2008 Paulson told the House Finance Committee that the economy was great even though he and Benanke had just discussed the problems a few days earlier.
MF — It doesn’t take a blind man to see the bubble began in 1996.
Anybody know what happened in 1996?
—–Me? I don’t have an opinion—-
That’s the funniest thing I’ve read all day! Little Fusion has opinions about everything…he starts with “It’s Bush’s fault” and then proceeds to spew his opinion over half a screen of the comments page.