That 2008 Economic Feeling

That 2008 Economic Feeling
(AP Photo/Richard Drew)

In March 2008, when first signs of trouble surfaced in the U.S. subprime mortgage market, then-Federal Reserve Chairman Ben Bernanke assured us that there was nothing much about which to worry. We all know what followed. Subprime mortgage troubles in the U.S. housing market contributed to the September 2008 Lehman Brothers bankruptcy. That in turn unleashed the worst global economic and financial market crisis in the post-war period.

Today, at a time that the coronavirus epidemic is spreading to the four corners of the world and at a time that it has already caused the economic equivalent of a cardiac arrest in China, the world’s second largest economy, Larry Kudlow, President Trump’s chief economic adviser, is blithely telling us that it is far too early for the Trump administration to be panicked into a significant economic stimulus package.

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