AIG Bailout: Some Still Don't Know That The Economic Party is Over

At least a few people are admitting that the party's just about over. But a lot of people are living like it's not even close. The lower-tier presidential candidates are pointing out that the economy is on fire, but the mainstream dunderhead candidates have hardly noticed. Meanwhile, the richer are getting richer--at your expense.

David Lieberman of USA Today said this this morning:
The years of easy money were fun while they lasted. Banks and credit card providers were so flush with cash that they could help virtually anyone - including many who had trouble juggling their bills - pay for whatever they wanted. But the party's over.

We've entered a period of tight credit - which could mean jobs lost, retirement plans pruned, college deferred and lifestyles diminished.

Across the nation, Americans know that something's wrong.
Finally. Somebody noticed. Who caused all this...?

The current campaign season is a clear indication that neither of the mainstream parties have any idea how to fix the economic sinkhole that we're falling into. All Barack Obama and John McCain know how to do is run around and call each other names--You don't have enough experience! You have too many houses!! You don't know how to use e-mail!!! Do to--I invented the Blackberry!!!!


The Republicans.

And the Democrats.

Are you really still voting for McCain or Obama? Silly person.

The current campaign season is a clear indication that neither of the mainstream parties even pretend to have any idea how to fix the economic sinkhole that we're falling into. All Barack Obama and John McCain know how to do is run around and call each other names--You don't have enough experience! You have too many houses!! You don't know how to use e-mail!!! Do to--I invented the Blackberry!!!! Meanwhile the US

Do you know somebody at the Fed that I can take to dinner--so we can engineer my own personal bailout??

economic brush fire has become a conflagration, and nearly everyone pretends not to notice.

When the Bush Administration lied its way into the occupation of Iraq, it was confident that its sojourn there would be a short cake walk. The deceptive smiles that occupied Bush war hawks' faces are still painted there some five years hence. It is with this same hubris that Washington insiders are now saying that the economy is just fine. Let this be a warning to all you voters that there needs to be a house-cleaning inside the beltway.

My economic outlook used to be like most people's outlook about Congress versus their congressman: my economy is just great, but everyone else's sure sucks! Now I'm noticing that my economy sucks too. My father-in-law put 4 kids through college at the same time--without using financial aid. Me...? Wish me an immense amount of luck with my 3 at a time. Either that or do you know somebody at the Fed that I can take to dinner--so we can engineer my own personal bailout??

A day after pulling the rescue trampoline away as Lehman Brothers plummeted to the pavement, the Fed decided that rescuing American International Group was much more important. It is now being stated that the $85 billion lifeline for AIG will be far too small, but apparently it's too late. The Federal Reserve now owns 79.9% of AIG as collateral. And I used to think that the rich weren't getting richer with ill-gotten booty. It's now getting more and more obvious (more and more quickly, like a snowball rolling downhill) that these capitalists are giving capitalism a bad name.

I think we have refused to let the cards fall where they may for far too long, and we've got to start sometime. Let it be now. It was right to let Lehman fail. It was right to let Bear Stearns fail (but they didn't). Now, let AIG fail.

In the wake of our economic disaster, there is more phoney good news, a la: The surge is working!! In this case, mortgage applications were up 33% last week. This is because interest rates are down. This is because the government took over Fannie and Freddie and they want to hedge the economic holocaust until after the next election. This is not good news. This is news that the shysters are still running amok and that hardly anyone has noticed.





Comments

  1. This is because government action has further incentivized people to engage in risky behavior.

    You schmooze and lobby in order to get rules that give you preferential position in the market and hurt your competitors. Then you use that leverage to grow to become "too big" to allow to fail. Then the government puts the taxpayers on the hook to save your tail. You walk away with your golden parachute and the stockholders retain their shares.

    That's not capitalism. That's capitalizing on favors from the political system.

    ReplyDelete
  2. I completely agree.

    Here's an interesting take on the whole thing--that perhaps the US has become more "Communist" in that regard than China.

    ReplyDelete

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