Dallas Fed President Richard Fisher is a well known anti-stimulus hawk.He was on BloombergTV this morning.
He said that stimulus is like the ADD drug Ritalin and that now the gas tank is full of it.
You can watch the video here.
From the transcript:
On what should be the appropriate prescription for the short term:
“The prescription word is the appropriate word. We keep applying what I call monetary Ritalin to the system. We all know there is a risk of over prescribing. And we have to worry about the long term consequences of what we do. We have an enormous buildup in reserves. It is not being utilized right now. We have 1.5 trillion dollars in excess bank reserves. Those bankers would like to put that money to work. We have 2 or 3 trillion dollars sitting on the sidelines in corporate America.”
On how to stimulate moving that money for constructive use:
“Very easily. You provide the incentive for the private sector to put people to work. That can only be provided by tax policy, fiscal policy, regulatory policy. I believe we of done our job. We have done enough. Just doing more does not solve the problem. The problem is engaging the transmission. We provided the gas. The gas tank is full. Who will incent the driver of this economy to step on the accelerator and move it forward? That is the private sector.”