Barely avoiding economic judgment day, maybe
I’ve been traveling this week as the American financial markets came as close to collapse as at anytime since 1929. And make no mistake: this disaster is real, it will unfold in unexpected ways, and it won’t be an event that is over quickly such as in 1987 — or even the S&L scandal. Some early takes:
–It would be ironic if Republican John Sidney McCain III were elected and George W. Bush left one positive legacy by stabilizing the meltdown — the "let the markets rule" so-called conservatives, who saved the day thanks to mechanisms put in place by Woodrow Wilson, FDR and successive liberals. If we didn’t have tools such as the Fed, FDIC, SEC, etc. — this could have been a calamity on the order of the "panics" of the 19th century, with worldwide contagion.
–This event should totally discredit the deregulation, market-religion ideas pursued over the past 25 years — it is the direct result of these policies. But maybe not. The administration may use unprecedented intervention to save capitalism, and then go back to their Milton Friedman sock-puppet talking points. And the duhs and ignos won’t care — Obama’s black, remember?
–Gee, remember when W intended to "spend his political capital" privatizing Social Security into the toxic investment bank dumps that are now failing? Republican John Sidney McCain III still wants to do this.
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