Sunday, September 14, 2008

This Is No Time for Nonsense



Now is not the time for more lipstick on a pig faux-controversies and scandals. This is what this election is about:
In one of the most dramatic days in Wall Street’s history, Merrill Lynch agreed to sell itself to Bank of America for roughly $50 billion to avert a deepening financial crisis, while another prominent securities firm, Lehman Brothers, hurtled toward liquidation after it failed to find a buyer, people briefed on the deals said.

The humbling moves, which reshape the landscape of American finance, mark the latest chapter in a tumultuous year in which once-proud financial institutions have been brought to their knees as a result of tens of billions of dollars in losses because of bad mortgage finance and real estate investments.

They culminated a weekend of frantic around-the-clock negotiations, as Wall Street bankers huddled in meetings at the behest of Bush administration officials to try to avoid a downward spiral in the markets stemming from a crisis of confidence.

“My goodness. I’ve been in the business 35 years, and these are the most extraordinary events I‘ve ever seen,” said Peter G. Peterson, co-founder of the private equity firm the Blackstone Group, who was head of Lehman in the 1970s and a secretary of commerce in the Nixon administration.
NYT.

The U.S. financial system is melting down. This is not a "mental recession". John McCain simply does not get it. We are facing one of the most critical economic crises the U.S. has ever seen. It's just not going to be enough to say we're going to deal with the crisis by "cutting back earmarks". Sorry, that's just pissing in a thundershower. We need greater regulation of the financial markets, a more aggressive and more powerful SEC, and people in the administration that understand the economy. We don't need Phill Gramm. We don't need a continuation of failed and shamefully discredited Republican economic orthodoxy. We certainly don't need know-nothing reflexive "small government" zombies like Palin.

Something is deadly wrong in America, and it's time to try to fix it. The time for idiotic bullsh*t is over. The stakes are simply too high.

1 comment:

MK said...

You're forgetting AIG.

http://www.ft.com/cms/s/0/ef3a1e16-8286-11dd-a019-000077b07658.html