There’s a lot of hooey from Washington about the financial crisis. Political theater, political drama. Fascinating if it weren’t so frightening. Ask a Washington Mutual stockholder who just lost everything this morning.
However, for those of us who think we aren’t being told the complete truth, there’s this viewpoint from the left:
"It's more hype than real risk," said James K. Galbraith, a University of Texas economist and son of the late economic historian John Kenneth Galbraith. "A nasty recession is possible, but the bailout will not cure that. So it's mainly relevant to the financial industry."
“The Paulson plan will get some bad assets off the balance sheets of troubled Wall Street institutions and commercial banks. That may help thaw the lending freeze.
“But it wouldn't reduce the crush of homes in or near foreclosure, said Simon Johnson, a professor at the Massachusetts Institute of Technology. That's a problem that will surely grow worse if the U.S. economy enters recession, leading to greater job losses, which feed a vicious downward spiral of even more foreclosures and defaults on car loans and credit-card debt.
“Americans are spooked by talk that financial Armageddon awaits.”
Mebbe. But the credit market froze up this morning. The first of the Four Horsemen of the Apocalypse?
Were it not for the seriousness, I would change channels. Frankly, I am weary of John McCain’s stunts. His antics are dramatic – but lacking in real, substantive leadership.
And I never thought I would say this, but I am beginning to feel sorry for Sarah Palin, who is clearly in over her head. McCain fed her into the meat grinder with but one thought in mind – winning the election.
C’mon. let’s go get a cup of coffee. And see if we can still cash a check.