As FDR was said to save capitalism from itself, it seems the Bush Administration and its Republican allies in Congress were hellbent on killing capitalism nonetheless, and so, they managed to dismantle most of the capitalism life-sustaining equipment set up by the New Deal (because it got in the way of the unbridled greed of their big business constituents)... and now, after an insane roller-coaster day that saw the first ever 1,000 point intra-day swing in the Dow Jones Industrial Average and the 9th straight loss day and the largest one week percentage loss ever, SecTreas Paulson, in conjunction with other world financial officials meeting in Washington, announced his intent to inject taxpayer capital into banks, i.e., a socialist style bailout of the banking system.
And at this point, since banks seem hellbent on not lending to anyone, it would seem to be the only way to unfreeze a frozen credit system, and ensure that there is economic activity beyond a strict cash basis, this would seem to be absolutely necessary. And so, a Bush Administration hellbent on "free market ideology" in all things is responsible for what will probably become the greatest nationalization of assets in the history of the world.
The fact is, years of neglecting the structural integrity of the financial system (both parties have their share of guilt, though Democrats with the junior share) have finally taken their toll... that bad moves didn't cause a crash this quarter seemed to be justification to double down the following quarter, whether it was failing to regulate derivatives and hedge funds, or injecting ever more liquidity which in turn made its way to subprime loans to prop up a housing bubble, or failing to ensure that productivity gains by workers were reflected in their wages, thereby encouraging more consumer borrowing, or government and trade deficits... all have taken their toll in a financial perfect storm.
And here we are. We're probably looking at some form of nationalization of our banking sector. And we're not even sure this will be enough to avert a global depression.
And, according to a CNN flash, Sarah Palin abused her power and violated state ethics laws in her own private "troopergate" case, as if anyone even cares about her anymore, or the McCain campaign's pathetic efforts to smear Obama with pathetic references to rehabilitated former Weather Underground members that try to hearken to the old e-mail smears that Obama is an Islamist terrorist... but immediately bring to mind McCain's far-more-troubling-connections-to-Charles-Keating (and Sarah Palin's to Alaskan separatists).
Meanwhile... the good old perfect storm Bush Administration... ultimately, not just the killer of American moral authority and public fiscal integrity and despoiler of the environment... it can now add "slayer of capitalism." The only mystery... is whether it will have (mercifully) killed off its own political party; that at least, would be compassionate.
Yes, TD, it is the "End of Days." One of my companies was able place a Little Mommy Real Loving Baby Cuddle and Coo doll in Walmart that giggles "Islam is the light" and "Satan is King." Those folks in Owasso, OK are really vigilant.
Posted by Hassan Bar Sinister at October 11, 2008 9:47 AM