"If we don't act immediately, we will not have an economy by Monday," he famously said.
Dear Ms. Pelosi,I'm here in Baltimore enjoying your native city. The weather's real nice, thank you.But I have a question. It relates to your article in Tuesday's USA Today. You pat yourself on the back so hard I was afraid you might have dislocated a shoulder. Hope you're alright.But since you think your efforts to rescue the US economy in 2008 were such a success, I thought you might like to respond to the front-page story of yesterday's Financial Times.It says the typical American family now earns less in real terms than in 1989 after family incomes fell for the fifth consecutive year.Here's my question: What kind of a recovery is it where family income goes down every single year? What kind of a recovery leaves family income lower than it was 24 years ago? And how does a consumer economy expect to grow when its consumers have less and less spending money?I know you're busy. So, I'll propose an answer. Isn't it possible that the US economy was in no danger of "failing" or disappearing? Isn't it possible that you were just writing down that huge mountain of debt that had been built up over the previous half a century?And isn't it possible that, by stopping the correction, you also stopped the healing process - leaving ordinary Americans with an economy burdened with too much debt...weak growth...few jobs...and little real prosperity?I hope you will think about this. And the next time you're in Baltimore please let me know. We'll have dinner at The Prime Rib right up the street.Regards,Bill Bonner