Tags: Reich | us | TARP | Referendum

Reich: US Should Have Held TARP Referendum

Friday, 04 Nov 2011 07:19 AM

News that Greece will ask voters to approve tough austerity measures via a referendum spooked markets and global leaders, fueling fears the eurozone is sliding deeper into trouble.

In reality, such a move is democracy at work, and the U.S. should have done likewise when pushing through the bank bailout bill late in 2008, known as TARP, says economist Robert Reich, who served in three national administrations and was a secretary of labor under President Bill Clinton.

Pushing through painful austerity measures in Greece will result in layoffs and will hurt the economy.
__________________________________________________________

71% Disapprove of Obama on the Economy — Gallup Poll
And 76% of Americans think it will get worse! Find out how you can immediately improve your own financial situation by watching the Aftershock Survival Summit now.

__________________________________________________________

Giving the populace the chance to reject it could result in a Greek default, which would damage the country's future ability to borrow and hurt the economy as well.

reich200ap.jpg
Robert Reich
(Associated Press photo)
"If Americans had been consulted about the bank bailout, I doubt it would have happened the way it did. At the very least, strict conditions would have been placed on the banks in return for the money," Reich
writes in a column appearing in the Christian Science Monitor.

"But Americans weren’t really consulted. It was an inside job. As a result, Wall Street has prospered but the rest of the nation hasn’t. One
out of four homeowners is underwater, owing more on their homes than the homes are worth," wrote Reich, now a professor of public policy at the University of California at Berkeley.

Greece, then should take a lesson from the U.S.

"So which is it? Rule by democracy or by financial markets? Based on what’s happened in America, I’d choose the former."

Germany, meanwhile, wants Greece to accept strict austerity measures in return for assistance coming from other European nations.

German European Commissioner Guenther Oettinger has said calls for a Greek referendum "made the situation considerably worse for countries which don't have the highest credit rating, and the danger of further setbacks is rising," according to Reuters.

© 2017 Newsmax Finance. All rights reserved.

 
1Like our page
2Share
StreetTalk
News that Greece will ask voters to approve tough austerity measures via a referendum spooked markets and global leaders, fueling fears the eurozone is sliding deeper into trouble. In reality, such a move is democracy at work, and the U.S. should have done likewise when...
Reich,us,TARP,Referendum
1890
2011-19-04
Friday, 04 Nov 2011 07:19 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved