Casey Milligan claims that the credit crunch is as fake as the WMDs in Iraq.
Because the bailout bill took time to pass, and then additional time for the Treasury to design and execute its $700 billion Capital Purchase Program (CPP), no bank received any money from the Treasury pursuant to the CPP until the last couple of days of October. Thus, if the warnings were right, payroll spending should have been precipitously lower in October than in the previous months. Instead, payroll spending was almost $1 billion dollars higher in October than in September – not exactly the collapse that we feared.
If Milligan is right, then the bailouts are nothing more than big government’s attempt at increasing their spending bills. This is not to say we’re not in a recession, just that the lack of credit availability is a myth that politicians are finding convienient for their own spending agendas.
via Free AdvicePublished in