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The Obama rescue

Economist Original article ›

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Obama's team has not carefully managed expectations for the Geithner speech on February 10th, resulting in disappointment at the lack of specifics. The stimulus plan was turned over to the Congresssional give and take and partisan battles in a manner that has reduced its effectiveness, with less of the aggressive spending originally envisaged, as well as spending that is weighted towards boosting demand in 2010 and beyond. So there is asense of an opportunity lost to go after the problem more effectively, as the warnings from the Japanese experience with this kind of crisis is that decisive action in sufficient magnitude and directness is needed to address the crisis.


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