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Summers: Stimulus Is Starting to Work

By Will McCahill,  Newser Staff

Posted Mar 13, 2009 10:51 AM CDT

(Newser) – Larry Summers sounded a note of cautious optimism today about President Obama's stimulus plan, the Washington Post reports. While it's way too early to assess its "broader economic impact," Obama's chief economic adviser called it "moderately encouraging" that consumer spending appears to be back on track.

"Since it began to take shape, consumer spending in the US, which was collapsing during the holiday season, appears, according to a number of indicators, to have stabilized," Summers told the Brookings Institution. He also warned of an "excess of fear" hampering recovery. "In the past few years, we’ve seen too much greed and too little fear; too much spending and not enough saving; too much borrowing and not enough worrying. Today, however, our problem is exactly the opposite.”

National Economic Council Director Lawrence Summers, left, and Treasury Secretary Tim Geithner attend a White House event.
National Economic Council Director Lawrence Summers, left, and Treasury Secretary Tim Geithner attend a White House event.   (AP Photo)
National Economic Council Director Lawrence Summers is seen at the White House on Feb. 23, 2009, after President Barack Obama addressed lawmakers at the Fiscal Responsibility Summit.
National Economic Council Director Lawrence Summers is seen at the White House on Feb. 23, 2009, after President Barack Obama addressed lawmakers at the Fiscal Responsibility Summit.   (AP Photo)
Treasury Secretary Tim Geithner, right, and National Economic Council Director Lawrence Summers, left, attend a speech by President Barack Obama.
Treasury Secretary Tim Geithner, right, and National Economic Council Director Lawrence Summers, left, attend a speech by President Barack Obama.   (AP Photo)
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COMMENTS
Showing 3 of 8 comments
sailor86
Mar 16, 2009 1:23 AM CDT
Republicans had their chance, and they blew it. Any negativity would be "sour grapes" as far as I'm concerned.
woodyTX
Mar 14, 2009 12:09 PM CDT
It was convoluted PR., but now you're spinning conspiracy theories. Sounds like "They're conspiring to deceive us". Thanks for the chuckle of the day. There were a few good economic signs recenlty like Citi and BofA showing better earnings and auto firms needing less cash. The Dow is reacting nicely but take no heed on daily or weekly moves. Watch the 6 month trend to take your cue. We're not nearly out of the woods yet. It's just too early to tell but this governmenet is making changes and implementing policy to put the economy on the right track. So try to take a balanced view, muster some patience and give it a few months. This isn't the state Lottery where you win or lose every Tuesday at 6 pm. If that doesn't work take a few oxycontin. Seems to work for others.
Vostok
Mar 14, 2009 9:39 AM CDT
Hahaahaha, thats the best comment I've seen in a while. Nothing more needs to be said.

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