James Alexander Michie: The legacy of the financial crisis | Bloomberg
Author: James Alexander Michie
While the month of January ended in 2010, Treasury Secretary Timothy Geithner maintained a telephone relationship with Federal Reserve Chairman Ben Bernanke. It was established that the economy was healthy, that is to say, it was going through a good moment, in the same way, the economic contagion had stopped. The increase had returned and likewise, it is worth noting that it has remained up to the present.
Geithner was confident that they had made the right decision by focusing decisively on restoring the increase rather than pleasing what I call the public’s cry for “Old Testament justice.”
Also a fact is important to highlight and likewise bring up, is that three days before, the voters of Massachusetts had pronounced a dissenting reprimand to elect a Republican for the same had the task of occupying the seat of the Democratic Senate Ted Kennedy in a special election that would become a possible threat to Obama’s agenda. Added to this, it is noteworthy that Geithner still did not understand the extent of public anger or how long it would last. In the eyes of Obama and him, the crisis was mainly a macroeconomic event that could be resolved through aggressive technical solutions. While they constituted the mergers, rescues, and lifelines of the Federal Reserve that freed to diverse corporations of Citigroup to General Motors and Goldman Sachs, they were boasting of the capacity of which they had to manage to isolate the fury understood on the part of the public.
However, it has been said that after ten years after the given crisis, it is an obvious fact that Obama was not very smart in considering that public sentiment could perhaps be nil or kept at bay. likewise, it is necessary to highlight that it is almost a fact that financial crises are as much about politics as about economics. In the same way, in democracy, the masses gifted with fortresses will be heard.
Now, a point that must be highlighted is that the effects caused by the paralysis never disappeared, in fact, consequently, party characters were unleashed on the left and on the right that ended the previous political period and similarly implanted what some call a poisonous and polarizing.
Take a read: https://www.bloomberg.com/news/articles/2018-08-30/the-biggest-legacy-of-the-financial-crisis-is-the-trump-presidency