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So Much For Economic & Political Leadership

by TheFalcon on September 19, 2008

The following CNN article provoked this commentary: ‘Sobering moment’ forged bipartisan support for bailout plan

So now we all know that the Federal Reserve, The Treasury, The President and Congress are feverishly working in concert to quickly enact legislation that will use taxpayer money to bail out wall street.  This is debt that no one else in their right mind will buy.  Which raises the question as to what that says about the American public if we quietly acquiesce to these proceedings, but I digress.  I will say that America could use a little introspection and some critical reasoning right now.  But be quick about it.

To add insult to economic injury, many of our high ranking law makers are patting themselves, Paulson and Bernanke on the back for working so quickly, intelligently and efficiently to rescue the economy from the madness of wall street at the expense of the people they are supposed to represent.  These events should provoke outrage but so far nothing much from the populous.

Let’s visit some of the comments from the above referenced article.

“Sen. Charles Schumer, D-New York, said that when he heard what might happen to the economy if Congress failed to act, “I gulped.””

“Paulson said the federal government would have to commit “hundreds of billions” of dollars to the trust to solve the credit crisis that is undermining the economy.” 

Rep. Barney Frank, the Democratic chairman of the House Financial Services Committee, said the bipartisan leadership agreed that the government must buy the “illiquid” assets “because the consequence of not doing so are so bad.””

Ok, so this thing is so bad that the implication is that if they don’t do this the economy will collapse, spelling disaster for everyone, including us.  However, it is interesting to note that they have been vague so far as to what exactly “the consequences of not doing so” really are.  Why can’t the general public know?  Presumably, if they told us, and it was really as bad for us as they say, Congress would have our wholehearted support for their proposal that the public should shoulder wall streets disaster.  Apparently, they are not so confident that these revelations would win our support.  Maybe, its because the severity of consequences would raise questions about how our economic and political leadership could have allowed this to happen on their watch.  How could a disaster of this magnitude have developed over time in such a way that our leaders took no notice?

It’s a rehtorical question of course.  So they won’t (so far) tell us what they are saving us from for fear that the solution in our minds won’t be a bail out but rather a leadership clear out.  Which brings us to one of the more queasy and maddening comments in the article.

According to Sen. Charles Schumer, D-New York – “If the American people were a fly on the wall at the meeting, they would have been proud,” Schumer said in a statement. “Everyone put aside their partisan differences and agreed to work together to pass something to address the state of the economy.”

So we are facing the worst financial and economic crisis of the countries history and a proposal from our leaders that we are going to have to foot the bill to the tune of at least $1 Trillion for someone else’s mistakes and the distinguished Senator from New York has the nerve to say we would be proud of the way they are working together to saddle us and our children’s children with freedom crushing debt.  This comment is simply extraordinary!

At least Sen. Richard Shelby, R-Alabama gave a hint that not everyone on capitol hill is off the reservation by saying, “We realized there’s stress, more than discomfort in our financial markets,”  but “this could be a trillion dollars.” and “The taxpayers can’t front everything, can’t pay for everything. Some people have got to pay themselves,…”

In closing, Sen. Jim DeMint, R-South Carolina indicated his concern about a plan that would move toward “socializing risk in the marketplace.”  He says,

“What is missing from it [the bailout plan] — and the recent string of bailouts — is a commitment to return to free enterprise economy,” further, “The federal government caused this problem by using taxpayer dollars to implicitly guarantee millions of mortgages. … This socialization of risk removed market accountability and has now set off a chain of events that is threatening the entire economy.”

Intelligence, a sense of duty and history, real statesmanship and some real accountability better appear over the horizon soon.

– The Falcon


{ 1 comment… read it below or add one }

1 MB August 13, 2009 at 5:12 pm

Something is terribly wrong with ‘secret’ government. Something is clearly not right.


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