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Obama Calls for Aid to U.S. Auto Industry, With Conditions

The government will do “whatever it takes'’ to revive the economy, Obama said. That means “we shouldn’t worry about the deficit next year or even the year after,'’ he said, adding that in the short term, “the most important thing is that we avoid a deepening recession.'’

Obviously, as far as a commitment goes, the government would always do whatever it takes to revive the economy. What is less obvious to them is what it does take.

If “whatever it takes” is measured in Dollars, then it’s the wrong whatever. If it’s increased regulation, it’s the wrong whatever. The most probably correct whatever is a few specific rule changes that stop certain perversions in risk preference, as Arnold Kling has mentioned.