Wednesday, September 17, 2008

No one knows what to do

A confidence building statement from our Senate Majority Leader regarding the late financial crisis showed up in a Bloomberg article today:

Sept. 17 (Bloomberg) -- The U.S. Congress is unlikely to pass new legislation to overhaul financial regulations this year because “no one knows what to do,” Senate Majority Leader Harry Reid said today.

“We are in new territory, this is a different game,” Reid said at a briefing in Washington. Neither Federal Reserve Chairman Ben Bernanke nor Treasury Secretary Henry Paulson “know what to do but they are trying to come up with ideas,” Reid said.

Mish is thankful that Congress thinks it's too late to do anything before the end of the year anyway.

But I suspect that the Obama vs. McCain tax plan debate is pretty much out the window. Whatever the economic scene looks like in two months, we can be pretty sure that the funding the federal budget will take on even greater urgency. Neither plan contemplated the vast expenditures put out the past couple of weeks.

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