ITA Wealth Management

Bryce Ward is a staff economist at ECONorthwest in Eugene, OR.  Ed Whitelaw is a professor emeritus of economics at the University of Oregon and founder and president of ECONorthwest.

In last Sunday’s Oregonian they write, “The U.S economy will endure this crisis, though many in it will suffer severely, as many have already.  Perhaps we’ve seen the worst, but few believe it.  There is a chance that we are on the verge of a severe recession.”

“…we’ve added approximately $200 billion to $300 billion to our national debt, and Harvard economist Kenneth Rogoff thinks that we could easily spend $1 trillion to $2 trillion in taxpayer dollars trying to keep this crisis from spreading.  Those closest to the sources of the meltdown in the housing and financial service industries are likely to take the biggest hits, but problems of this magnitude likely will burden all sectors of the economy.”

“The 30-year push to eliminate (government) regulation must end.  Markets require clear rules and mechanisms to enforce those rules.  Without rules and enforcement, crises occur and people lose trust in markets.  Without trust, markets fail and the economy suffers.  Government must play a vital role in restoring trust.  One of the presidential candidates clearly understands this.”

Hence, the question – “Which Candidate Understands the Problem?  The one who claims to be a deregulator and is now apologizing for this stance, or the other fellow? Is it the one who graduated number 894 out of 899 at the Naval Academy or the one who was head of the Harvard Law Review?

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