As the Economy Brightens, Government Officials Deserve More Credit

Before you go, we thought you'd like these...
Before you go close icon
Capitol building in Washington D.C., with flagInvestors tend to be skeptical about government intervention in the economy. With the financial crisis, though, much of the healthy questioning spiraled into outright cynicism.

But some officials, like Federal Reserve Chairman Ben Bernanke and Treasury Secretary Timothy Geithner, may deserve more credit than they often get. While many investors had feared that government intrusion following the financial crisis would inevitably cause more turmoil, the official actions seem to have played a major role in stabilizing the economy.

And as a recovery takes shape, the Federal Reserve shows signs of methodically winding down its involvement, contrary to the sustained meddling many had been predicting. The latest indications of the Fed gently heading for the door: an end to buying mortgage securities.



The move follows an announcement that the Treasury Department will unwind its stake in troubled bank Citigroup (C) this year. Other measures taken to provide easy credit during the financial crisis, meanwhile, have also begun getting pulled back.

Also, all the proclamations that the new health care bill would tank the markets have fallen flat.

To be sure, officials are dealing with a complicated and highly risky situation. Their handling of it so far, though, should inspire more confidence in the government's ability to handle such thorny problems.
Read Full Story

Markets

S&P 500 2,368.06 6.93 0.29%
DJIA 20,728.49 69.17 0.33%
NASDAQ 5,914.34 16.80 0.28%
DAX 12,256.43 53.43 0.44%
NIKKEI 225 19,148.82 85.60 0.45%
HANG SENG 24,301.09 -90.96 -0.37%
USD (per EUR) 1.07 0.00 0.00%
USD (per CHF) 1.00 0.00 -0.01%
JPY (per USD) 111.90 0.13 0.12%
GBP (per USD) 1.25 0.00 0.17%

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners

Driver Sees Something Move On The Side Of The Road - When He Pulls Over He Can't Believe Driver Sees Something Move On The Side Of The Road - When He Pulls Over He Can't Believe
The Haunting Face of a Man Who Lived 700 Years Ago The Haunting Face of a Man Who Lived 700 Years Ago
Man Built This Contraption In His Backyard - And Even He Was Surprised How Well It Worked Man Built This Contraption In His Backyard - And Even He Was Surprised How Well It Worked