Today's Article
The financial pain of
the Great Recession
is still with us and
much remains to be
done, says a recent
congressional study.
the Great Recession
is still with us and
much remains to be
done, says a recent
congressional study.
The American Spark
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The Great Recession Isn't Over, Gov't Report Admits
By Cliff Montgomery - Oct. 29th, 2009
The Congressional Research Service (CRS) on Oct. 2nd issued a study on the Great Recession. The report's
conclusion? The financial pain is still with us, and much remains to be done.
It's a good counter to the corporate media's delusion that the Recession is 'over' and a 'thing of the past'.
Below The American Spark has printed the summary from the CRS report:
"The world is near the bottom of a global recession that is causing widespread business contraction,
increases in unemployment, and shrinking government revenues. Although recent data indicate the large
industrialized economies may have reached bottom and are beginning to recover, for the most part,
unemployment is still rising.
"Numerous small banks and households still face huge problems in restoring their balance sheets, and
unemployment has combined with sub-prime loans to keep home foreclosures at a high rate.
"Nearly all industrialized countries and many emerging and developing nations have announced economic
stimulus and/or financial sector rescue packages, such as the American Recovery and Reinvestment Act of
2009. Several countries have resorted to borrowing from the International Monetary Fund as a last resort.
"The crisis has exposed fundamental weaknesses in financial systems worldwide, demonstrated how
interconnected and interdependent economies are today, and has posed vexing policy dilemmas.
"The process for coping with the crisis by countries across the globe has been manifest in four basic phases.
"The first has been intervention to contain the contagion and restore confidence in the system. This has
required extraordinary measures both in scope, cost, and extent of government reach.
"The second has been coping with the secondary effects of the crisis, particularly the global recession and
flight of capital from countries in emerging markets and elsewhere that have been affected by the crisis.
"The third phase of this process is to make changes in the financial system to reduce risk and prevent future
crises. In order to give these proposals political backing, world leaders have called for international meetings to
address changes in policy, regulations, oversight, and enforcement. On September 24-25, 2009, heads of the
G-20 nations met in Pittsburgh to address the global financial crisis.
"The fourth phase of the process is dealing with political, social, and security effects of the financial turmoil.
One such effect is the strengthened role of China in financial markets.
"The role for Congress in this financial crisis is multifaceted. While the recent focus has been on combating the
recession, the ultimate issue perhaps is how to ensure the smooth and efficient functioning of financial
markets to promote the general well-being of the country while protecting taxpayer interests and facilitating
business operations without creating a moral hazard.
"In addition to preventing future crises through legislative, oversight, and domestic regulatory functions, On
June 17, 2009, the Department of the Treasury presented the Obama Administration proposal for financial
regulatory reform.
"The proposal focuses on five areas and includes establishing the Federal Reserve as a systemic risk
regulator, creating a Council of Regulators, regulating all financial derivatives, creating a Consumer Financial
Protection Agency, improving coordination and oversight of international financial markets, and other
provisions.
"Treasury also has submitted to Congress proposed legislation to implement the reforms. The reform agenda
now has moved to Congress. Legislation in Congress addresses many of the issues in the Treasury plan but
also may focus on other financial issues.
"Congress also plays a role in measures to reform and recapitalize the International Monetary Fund, the World
Bank, and regional development banks."
Like what you're reading so far? Then why not order a full year (52 issues) of The American Spark
e-newsletter for only $15? A major article covering an story not being told in the Corporate Press will be
delivered to your email every Monday morning for a full year, for less than 30 cents an issue. Order Now!
By Cliff Montgomery - Oct. 29th, 2009
The Congressional Research Service (CRS) on Oct. 2nd issued a study on the Great Recession. The report's
conclusion? The financial pain is still with us, and much remains to be done.
It's a good counter to the corporate media's delusion that the Recession is 'over' and a 'thing of the past'.
Below The American Spark has printed the summary from the CRS report:
"The world is near the bottom of a global recession that is causing widespread business contraction,
increases in unemployment, and shrinking government revenues. Although recent data indicate the large
industrialized economies may have reached bottom and are beginning to recover, for the most part,
unemployment is still rising.
"Numerous small banks and households still face huge problems in restoring their balance sheets, and
unemployment has combined with sub-prime loans to keep home foreclosures at a high rate.
"Nearly all industrialized countries and many emerging and developing nations have announced economic
stimulus and/or financial sector rescue packages, such as the American Recovery and Reinvestment Act of
2009. Several countries have resorted to borrowing from the International Monetary Fund as a last resort.
"The crisis has exposed fundamental weaknesses in financial systems worldwide, demonstrated how
interconnected and interdependent economies are today, and has posed vexing policy dilemmas.
"The process for coping with the crisis by countries across the globe has been manifest in four basic phases.
"The first has been intervention to contain the contagion and restore confidence in the system. This has
required extraordinary measures both in scope, cost, and extent of government reach.
"The second has been coping with the secondary effects of the crisis, particularly the global recession and
flight of capital from countries in emerging markets and elsewhere that have been affected by the crisis.
"The third phase of this process is to make changes in the financial system to reduce risk and prevent future
crises. In order to give these proposals political backing, world leaders have called for international meetings to
address changes in policy, regulations, oversight, and enforcement. On September 24-25, 2009, heads of the
G-20 nations met in Pittsburgh to address the global financial crisis.
"The fourth phase of the process is dealing with political, social, and security effects of the financial turmoil.
One such effect is the strengthened role of China in financial markets.
"The role for Congress in this financial crisis is multifaceted. While the recent focus has been on combating the
recession, the ultimate issue perhaps is how to ensure the smooth and efficient functioning of financial
markets to promote the general well-being of the country while protecting taxpayer interests and facilitating
business operations without creating a moral hazard.
"In addition to preventing future crises through legislative, oversight, and domestic regulatory functions, On
June 17, 2009, the Department of the Treasury presented the Obama Administration proposal for financial
regulatory reform.
"The proposal focuses on five areas and includes establishing the Federal Reserve as a systemic risk
regulator, creating a Council of Regulators, regulating all financial derivatives, creating a Consumer Financial
Protection Agency, improving coordination and oversight of international financial markets, and other
provisions.
"Treasury also has submitted to Congress proposed legislation to implement the reforms. The reform agenda
now has moved to Congress. Legislation in Congress addresses many of the issues in the Treasury plan but
also may focus on other financial issues.
"Congress also plays a role in measures to reform and recapitalize the International Monetary Fund, the World
Bank, and regional development banks."
Like what you're reading so far? Then why not order a full year (52 issues) of The American Spark
e-newsletter for only $15? A major article covering an story not being told in the Corporate Press will be
delivered to your email every Monday morning for a full year, for less than 30 cents an issue. Order Now!
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