He said some very sobering things. In no way was he as measured, as the treasury secretary or our fed chairman.
Today, Though I hear this being quoted:
"Bailout could deepen crisis, cbo chief says"
I was stunned, I didn't remember this part of the testimony.... only I read it and realize there is a word there...COULD... "Could deepen"
Lets look at some of the other things he said: This is from His blog
Severe credit crunch could have devastating effects on Economies.
In sum, the problems occurring in financial markets raise the possibility of a severe credit crunch, which could have devastating effects on the U.S. and world economies.
There is that Could Word again..... What is the rest of that.... Devastate????.... My word... What could it Devastate... U.S. and World Economies.
In a WSJ story he is quoted.
Prices of some assets are below their fundamental value
In the current environment, though, with short-term financing difficult to obtain, the arbitragers have difficulty stepping into the market. “It is therefore at least possible that the prices of some assets are below their fundamental value,”
Orszag said.ok.... again... that word is "possible"
Now, here is another story :
A watchdog agency says Washington's plan to rescue Wall Street will eventually cost "substantially less" than the often-quoted amount of $700 billion US.
"The administration probably will spend that amount of money buying bad debt from ailing financial institutions," said Peter Orszag, director of the Congressional Budget Office, a federal agency that examines and criticizes various government proposals.
"[But] the government would sell the acquired assets and thus generate income that would offset at least much of the initial cost," he said in testimony Wednesday before the U.S. House of Representatives' budget committee.
So.... As the economic game of brinkmanship goes on, as Taxpayers revolt at the idea of providing liquidity to Banks. Don't doubt, this game is serious. The affects are serious... I don't know what plan is the right plan... but the banks need to be recapitalized before they can start lending.
and banks can wait for decades to do it on their own, as they have during every deep economic contraction.... they are not here to provide the economy with credit, they are here to make money.
If Government wants them to "help the economy", The government needs to help them.
But I'm sure the solution the Republicans just offered: "Tax cuts", you insure the MBS, More Deregulation.....
Don't worry, McCain will come to save the day.