Sunday, September 28, 2008

Are politicians moving too slowly to accomplish too little?

Cross-posted from Progressive-Independence.org.

From an article by John Browne at Asia Times:

Last week, US Treasury secretary Henry Paulson and Federal Reserve chairman Ben Bernanke faced congressional leaders with a reported forecast that we are "literally days away from a complete meltdown of our financial system". Apparently, the politicians were stunned into a long silence.

If citizens across the country could glimpse the horror seen by the congressmen (of which we have long warned), then widespread panic would truly be the order of the day. In particular, people will be shocked to see how Paulson’s seemingly vast request to congress for some $1 trillion is utterly dwarfed by the likely problem.


Later in the article:

If the economy moves into a severe recession and then depression, default rates will explode. These, in turn, will cause stock markets to implode, as they did in 1929. In addition, the US dollar is likely to plummet, driving up the trade deficit in the longer term. Considering these factors, many of which the government prefers to hide, things look bad - very bad.


The thing is, most Americans seem to oppose any bailout of Wall Street whatsoever. U.S. Senator Dianne Feinstein was inundated with communications from constituents demanding that she vote against giving any of their tax dollars to Wall Street, according to the Kansas City Star:

Feinstein's office has heard from about 50,000 constituents since Congress began considering a financial rescue plan about a week ago - and "only one of a thousand supports it - whatever it is," the California Democrat said.

Lawmakers from both parties reported similar confusion and concern among constituents as they spent their Saturday painstakingly, and sometimes painfully, trying to craft a still-elusive compromise package.

Senate Majority Leader Harry Reid and Republican Leader Mitch McConnell aimed to have a final plan ready by 6 p.m. Sunday, in time for the opening of markets around the world.

But House Republicans, whose objections derailed a deal reached last week, warned they did not want any rush to judgment.


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The senator tends to side on most issues with Democratic liberals and moderates, but her feedback from home was similar to what conservatives were hearing. "People call us and say they're really against bailing out fat-cats. That's a big issue," she said.

"We've heard from hundreds of people who say, 'We pay our bills. Why can't Wall Street pay theirs?' " said Rep. Kay Granger, R-Texas.

Sen. Bob Corker, R-Tenn., said his office had received 3,500 calls in recent days "and just 95 said they supported what we've done so far."


Republicans have apparently been revolting against their own party's dictator in the White House, seemingly out of a desire to finally look as though they oppose big government interference in the market system — earlier this month, the feds took lending giant Fannie Mae back under their control and also seized its counterpart, Freddie Mac.

Whether this is really the case is up for debate; it could all be a ploy to extend the financial crisis so as to force Democrats in Congress to cave in and write another blank check. My gut, however, tells me there's genuine fear that a bailout not crafted to give taxpayers at least partial ownership of the financial institutions in return for a bailout would create a massive backlash at the polls come November.

At any rate, once the bailout does go through (no matter what form it takes), shall it be enough? According to at least one American economics writer and the foreign press, we're already in the throes of an economic depression that began months ago. Considering the massive U.S. debt already being passed on to an incalculable number of future generations, adding another trillion or so dollars to it doesn't seem as though it'll solve the problem we now face.

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JasonBirk佳琪 said...

人生中最重要的是要自尊、自愛、自立、自強、自信。..................................................

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育隆 said...

生命的意義,是在於活的充實;而不是在於活得長久。.......................................................

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陳佑發 said...

Nothing comes from nothing.............................................................

韋以韋以 said...

每日都有新日光,每日都有新希望。..................................................

盈廖生家秀蔡 said...

生活很多細節都要小心點,請多保重 ..................................................

童祖如童祖如 said...

Knowledge is power................................................

胡維倫 said...

男女互悅,未必廝守終生,相愛就是美的。.................................................................

林思楊偉馨沛 said...

好的部落格就要和好朋友分享--感謝分享..................................................................

惠慧萍婷 said...

活是一種鍛鍊靈魂的東西..................................................................

建邱勳 said...

謝謝大大無私分享 感恩唷(>o<)............................................................

1615 said...

喜歡你的部落格,留言請您繼續加油............................................................

冠陳儒 said...

「仁慈」二個字,就能讓冬天三個月都溫暖。..................................................

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時間可證明一切~你的BLOG是我覺得不賴的............................................................

佳張張張張燕張張張張張 said...

nice job! waiting for your new artical.............................................................

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Michael

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