Economy 'Back From the Abyss:' Summers

By Harry Kimball,  Newser Staff
Posted Jul 17, 2009 12:39 PM CDT
Larry Summers, chairman of the White House National Economic Council.   (AP Photo)
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(Newser) – President Obama's top economist is confident that swift action by the administration averted disaster, ABC News reports. “We were at the brink of catastrophe at the beginning of the year,” Larry Summers says, “but we have walked some substantial distance back from the abyss.” Summers credits the recovery to the two-tiered plan that moved quickly to stabilize the financial system while simultaneously preparing for future growth.

“First, the most immediate priority was to rescue the economy by restoring confidence and breaking the vicious cycle of economic contraction and financial failure,” Summers says. “Second, the recovery from this crisis would be built not on the flimsy foundation of asset bubbles but on the firm foundation of productive investment and long-term growth.” Even Summers is in awe of the progress: “The distance we have traveled these past six months is remarkable.”