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> The United States government is propping up some American industries, but again, not to the extent of the Japanese government in the 90s. If that were the cas

by anamax 17y ago

> The United States government is propping up some American industries, but again, not to the extent of the Japanese government in the 90s. If that were the case, they absolutely would not have let Lehman Brothers fail. The problem with that argument is that the US govt may have changed its behavior after letting LB fail. Letting LB fail is also consistent with "we're going to make sure that politically-connected companies will survive". In other words, LB's failure does not tell us that the US govt is not in the biz of propping up some american industries. It doesn't even tell us taht the US govt isn't in the biz of propping up the financial sector. In other news, the US govt bought the rest of GMAC last week. GMAC provides financing for many GM and Chrysler buyers. (I think that GMAC also owns DiTech.) Also, the US Govt announced that the sky is the limit for bailing out Fannie and Freddie.

loganfrederick 17y ago
I don't disagree with you. The entire issue, and comparing the US economy with Japan's, is a gray area. Fannie and Freddie have always been quasi-government organizations running with government contracts/charters. To make the conversation slightly political (since we are discussing government influence on the economy), I don't agree with most of the actions the government has taken in relation to the auto industry. Still, it's not as though the Post Office is acting as a savings account like a bank as was the case in Japan. That's a different shade of gray than what's occurring in the USA.
- anamax 17y ago
  > Fannie and Freddie have always been quasi-government organizations running with government contracts/charters. Yet, as late as early 2008, suggesting that there was actually a federal guarantee or that Fannie and Freddie should be under significant govt oversight was a sure way to get attacked politically. (McCain got absolutely hammered when he tried in a couple of years earlier.) Fannie and Freddie execs were prominent in Obama's campaign and some of them landed prominent jobs in the administration.

by anamax 17y ago

loganfrederick 17y ago

I don't disagree with you. The entire issue, and comparing the US economy with Japan's, is a gray area. Fannie and Freddie have always been quasi-government organizations running with government contracts/charters. To make the conversation slightly political (since we are discussing government influence on the economy), I don't agree with most of the actions the government has taken in relation to the auto industry. Still, it's not as though the Post Office is acting as a savings account like a bank as was the case in Japan. That's a different shade of gray than what's occurring in the USA.

anamax 17y ago
> Fannie and Freddie have always been quasi-government organizations running with government contracts/charters. Yet, as late as early 2008, suggesting that there was actually a federal guarantee or that Fannie and Freddie should be under significant govt oversight was a sure way to get attacked politically. (McCain got absolutely hammered when he tried in a couple of years earlier.) Fannie and Freddie execs were prominent in Obama's campaign and some of them landed prominent jobs in the administration.