Economist Dean Baker predicted the housing bubble would burst creating the current economic crisis. He's been railing against former and current Fed chairs Alan Greenspan, Benjamin Bernanke and President Bush's Treasury Secretary Henry Paulson for not seeing it coming. Now he says he backs President Obama's stimulus package.
Baker, my guest today on News Talk Online on Paltalk.com, says "all this was predictable."
"The people who were in charge of running policy," he adds, "...just totally missed the boat."
Greenspan, he says, allowed the economy to grow on the back of the housing bubble. Then got out just before it burst, putting the problem in the hands of his successor.
"We need a very big package to get us out of this," Baker says in support of the stimulus plan.
"The economy is in an absolute free fall."