Reply #6: It was Keynesian Economics. This is why Bernake followed the [View All]

[OHdem10]

FDR Model. As a scholar of the Great Depression Bernanke had
learned that FDR had the correct approach but most present
scholars believe he had been too cautious in the amount of
money he put toward bailing out the banks.(Or Congress would
only permit him so much money.) This slowed down the process.

Therefore Bernanke and Paulson knew they had to throw large
amounts to stabilize the Financial Industry. Yes, it is
Keynesian Economics --When in such a crisis, the only Institution
large enough to help is the Government. George Bush is
a real conservative and I am sure things had to be terrible
for him to agree to this process.

If they had not used Keynes, GWB would have been the 2ond
Herbert Hoover.