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Economic Bailout Anniversary 

Wayne Harvey

It was a year ago this week Congress approved and enacted the Emergency Economic Stabilization Act of 2008.It was done in response to the subprime mortgage lending crisis.The Dean of the Business School at Husson University, Robert Kuhn says faculty members were wondering if it would be the start of something similar to the great depression.It didn’t get to that level and Kuhn says some of the leading indicators are saying we’re through the worst of it.But to say yes or no to the question of did the bailout work, he says it’s too complex to answer that way.”The main thing that it did do is it stabilized the downturn and it gave enough confidence in markets that the government would come up with a stabilizing program. That confidence is beginning to return, that’s what you have to do when you go through a situation like we went through in September when all the confidence in the market collapsed. It froze up, credit froze up, I mean money was not circulating.”Kuhn says a capitalist economy will not return completely until people start spending again, and there is still a lot of debt to work through both privately and in the government.