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Faster, Economy. Fail! Fail! Fail!???

Dammit, I Coulda Fixed This Mess!

Dammit, I Coulda Fixed This Mess!

Oh dear, oh dear. Is our post-Chicago School neo-liberal deregulated greed-is-good utopia showing the cracks in its free-for-all facade?

NEW YORK – When Wall Street woke up Monday morning, two more of its storied firms had vanished.

Lehman Brothers, burdened by $60 billion in soured real-estate holdings, said it is filing for Chapter 11 bankruptcy after attempts to rescue the 158-year-old firm failed.

Bank of America Corp. said it is snapping up Merrill Lynch & Co. Inc. in an $50 billion all-stock transaction.

The demise of the independent Wall Street institutions came as shock waves from the 14-month-old credit crisis roiled the U.S. financial system six months after the collapse of Bear Stearns.

The world’s largest insurance company, American International Group Inc., also was forced into a restructuring.

But are we panicking? Heck no! The Murkin economy is strong and secure! The fundamentals are sound! Pay no attention to that man behind the curtain!

Well, maybe we’re panicking a little bit.

And a global consortium of banks, working with government officials in New York, announced a $70 billion pool of funds to lend to troubled financial companies.

The aim, according to participants who spoke to The Associated Press, was to prevent a worldwide panic on stock and other financial exchanges.

Ten banks – Bank of America, Barclays, Citibank, Credit Suisse, Deutsche Bank, Goldman Sachs, JP Morgan, Merrill Lynch, Morgan Stanley and UBS – each agreed to provide $7 billion “to help enhance liquidity and mitigate the unprecedented volatility and other challenges affecting global equity and debt markets.”

In a way, I think this was the point of globalization – to get us all so dependent on each other that no large country’s economy could be allowed to fail. Unfortunately, there is a lot of good faith assumed under this idea – good faith which we, as a nation, did not practice. We allowed our banking institutions to make extremely risky investments and deregulated our credit industries, and now both our economy and the economies of other nations around the world are being adversely affected.

Oh, and about those vaunted fundamentals? They don’t matter so much.

[Nouriel Roubini, chairman of the consulting firm RGE Monitor], said it’s difficult to accurately gauge the health of companies like Merrill because their financial health depends on how they value complex securities. As a result, their finances aren’t very transparent, he said.

That can lead to a loss of confidence in the financial markets, he said, which can overwhelm an investment bank even if it is financially healthy by some measures.

“Once you lose confidence, the fundamentals matter less,” he said.

Will the bleeding stop soon? Not bloody likely.

The International Monetary Fund predicted earlier this year that total losses from the credit crisis could reach almost $1 trillion. So far, banks have only taken about $350 billion in losses.

Commercial banks are also starting to feel the pinch. Eleven have closed so far this year, including Pasadena, Calif.-based IndyMac Bank, which had $32 billion in assets and $19 billion in deposits.

Christopher Whalen, managing director of Institutional Risk Analytics, a research firm, predicts that approximately 110 banks with $850 billion in assets could close by next July. That’s out of 8,400 federally insured institutions, he said, which together hold $13 trillion in assets.

Individual customers are starting to get nervous about the financial health of their banks for the first time in generations, he said. Whalen’s firm analyzes the safety and soundness of banks for business clients, but began receiving inquiries from individuals in the past two months for the first time, he said.

“If we don’t get ahead of this, we are going to face a run on the retail banks by election day,” he said.

A run on the banks. Overspeculation in real estate. Deregulation to the point of insanity. The government forced to take drastic measures and throw ever-more-valueless money into failing financial institutions, thus making government BIGGER. Hmmmmm, what does this remind me of?

Some think the frightening downward spiral of this economy will favor Democrats, and Barack Obama, in November. But I believe that the Democratic Party has squandered its economic credibility, jettisoning the Clintons, one of the most trusted economic brands in the history of America, for Barack Obama, an unknown brand with newer packaging. 

Regardless of their choice for president, voters judged Hillary Clinton to be the most capable of the three candidates when it comes to dealing with economic problems. She garnered 32%, compared with 26% for Obama and 23% for McCain.

Given that horrible decision, where is the superior judgment of the Democrats on the economy?

It looks like the American people are no longer certain of that judgment. McCain and Obama are now basically tied on economic trust issues, although at one time, Obama had a 16-point lead in that area. In fact, downticket Democrats are now in a lot of trouble, putting our once-anticipated veto-proof majority in the Senate at great risk.

And don’t expect the latest set of attacks by Obama to stick to John McCain, because for the quadrillionth time, McCain and Bush are not the same. Not even close.

I don’t know if anyone can help America, and the Democratic Party, at this point in history. I think Bush has royally screwed us for at least another 4-8 years, and the DNC has fucked things up beyond all possible imagination. But maybe, just maybe, we PUMAs can help wake the Party up to its massive errors in straying from its core principles. And maybe we can help downticket Dems with their money problems. And maybe we can convince other Americans to join us and help clean the Augean Stables of the incredible corruption that infects both parties.

And maybe, just maybe, We The People will come through this crisis better, more unified, and more powerful than ever.

Because what doesn’t kill us, makes us stronger.


79 Responses

  1. Because what doesn’t kill us, makes us stronger.

    Well, some of the things that don’t kill us leave us permanently disabled or in a coma. Rather like the current state of the US economy and the Democratic party.

    Not exactly grounds for optimism.

  2. Sounds like I need to keep my money not send it to clueless Downticket Dems.

  3. Dems are just as much in the pocket of Wall Street as Republicans are. Biden is the darling of the credit card industry.

  4. Florida Surfer – The New Deal came out of the Depression.

    I’m not super-optimistic either, but we need to get a freaking clue already about this country and how to run it. The two ruling parties need a major shakeup. Things cannot continue the way they are.

    We are in for a bumpy ride.

    Mawm – Hmmmm…maybe I didn’t get the effect I was going for there.


  5. Oh, yeah, Florida Surfer, and the Nancy PELLLLLsio congress thanks for doing nothing. And the added bonus of Joe Biden’s great kill of the bankrupcy bill. Don’t love it. SNARK JOE!

  6. And let’s factor in the cost of the unholy war here and I see Shirley Temple dancing once again to take our minds off our miseries!

  7. How much money is enough for these piggy fund managers anyway???

  8. The New Deal came out of the Depression.

    No matter how much I dislike Obama and McCain, I can’t get myself to wish for a prolonged depression in order to show them a lesson.

    I’d like to think the US remains a land of hope and opportunity, but in the current circumstances I’d gladly emigrate to Europe. There’s just that pesky job thing that keeps me here at the moment.

  9. Please note solid blue state of WA now down to a virtual dead heat with Obama now leading by only 2. And Gregoire in real trouble. If NY is down to 5, I am curious about MA and CA. Since we have so much of the Hollyhoos, CA may hold for Obama. But if McCain runs those immigration ads in Spanish in CA he will probably make a dent.

  10. And Europe is better how? This will become a global crisis so every money market will be touched in some way. And the higher the cost of fuel, the more vulnerable we will all be worldwide.

  11. I think we should avoid sounding as if we want a crash.

  12. Also, madamab, great post!

  13. In McCain’s push on economics in Orlando this am he talked about how the strength of the American economy is in its workers, in their skills, hard work and innovative spirit. He called that the fist fundamental of America’s economic success. He then talked about how that fundamental is being threatened by the greed and recklessness of Wall St. He accused Wall St. of running our financial instituions like casinos.

  14. The question: And Europe is better how?

    Well, there’s
    1.) Public transportation.
    2.) Superior health care.
    3.) A functioning educational system.
    4.) More civilized working conditions.
    5.) Vastly better food.
    6.) A chance to ride my bike nearly anywhere.

    We’ve got better surfing, and that’s about it.

  15. At the risk of repeating myself, as always madamab, well done. The posters on this blog are some of the most talented writers around. Bar none.

  16. plural, I hope you’re not talking about my post. Because I do not feel that way, I’m not a idiot, it would hurt everyone in this country. I was talking about the Dem. congress doing nothing to fix the problem.

  17. Pat Johnson: I noted on earlier thread but will repeat it here in case you had already moved on. Re: your “confession” as to the enormous time you find yourself spending on these blogs while the family and the world kind of builds on your doorstep. I am in it with you. It is amazing.

  18. No, it was just a general comment about today.

    If you want to see a real crash, look up the Crash of 1987. Over 20 percent in one day.

  19. I don’t want a Depression, but I don’t see any way of stopping it now.

    What I am wishing for is a popular uprising that will prevent these things from happening in the future.

  20. No one is predicting a crash as much as they are predicting some dire times ahead. When you cannot afford to ship products, when the cost of putting gas into your tank is breaking your budget, when the airlines are now starting to put a $25.00 fee for each piece of luggage on top of the ticket price, when food staples are stretching a budget to the max, when jobs are being threatened because of many of the above realities, then the future looks less bright than it did just one year ago.

    I am now paying over $105.00 a month from the same time last year just to heat my home this winter and I am budgeted with the gas company. Why would I not be fearful?

    The infrastructure is crumbling, China holds our debt, and the war costs rage on unabaited. Sorry, call it what you will, but I do not feel very confident at the moment.

  21. Thanks plural for responding, I re-read my post and noticed I had left a word out. I was unreadable, HA!

  22. The first this people should do is cancel/cut back on their cable and satellite TV usage!

  23. Jangles: We gather I fear to bolster one another. Like someone mentioned before: if it had not been for this blog most of us would be full blown insane by now.

  24. Full Disclosure: I can’t think of a single area in which I trust Obama, either because of inexperience, lack of knowledge, or flimsy principles.

    But the economy may be the area in which I trust Obama the least. He is that god-awful stereotype of tax-and-spend Democratic liberal when it comes to the economy, and I cannot believe the Democratic Party passed up the best economics candidate of all the parties for this twit.

    They put all their eggs in one 2002 speech basket, and that basket is no longer jack-sh*t relevant.

    I don’t think McCain is anywhere in the same breathing range of Hillary when it comes to economics, but I do trust him more on fiscal restraint, accountability, and corruption issues than I do Obama. I wish the election over, McCain as POTUS, and him getting input from Hillary.

  25. Jangles, on September 15th, 2008 at 3:32 pm Said:
    Please note solid blue state of WA now down to a virtual dead heat with Obama now leading by only 2. And Gregoire in real trouble. If NY is down to 5, I am curious about MA and CA. Since we have so much of the Hollyhoos, CA may hold for Obama. But if McCain runs those immigration ads in Spanish in CA he will probably make a dent.

    At work I’m surrounded by Obama supporters. And they keep talking like they think he’s going to win in a landslide. And I keep wondering: Don’t they read the news? Are these folks really that out of touch?

  26. gxm: You actually answered your own question. They are his supporters simply because they never went any further than his celebrity appeal. Discerning voters can give you at least 10 reasons why they could not vote for him. Obama supporters are hard pressed to offer one reason why they would.

  27. plural, on September 15th, 2008 at 3:43 pm Said:

    No, it was just a general comment about today.

    If you want to see a real crash, look up the Crash of 1987. Over 20 percent in one day.

    I don’t need to look it up; I watched it in living color on MSNBC.*g*
    The Bushites set this ball in motion and I don’t think anything can stop it until it hits bottom in 2-3 years. Treasury and the Fed have been trying to keep the balloon inflated until a Dem was in the WH…that has only delayed and worsened the final outcome. It looks as if McCain in going to get the blame ala Hoover, IMO.

  28. GXM

    yes, they are. however, this thing isn’t over or even close to it. the electoral map is what needs to be studied. from what I can tell if McCain wins Ohio, he can lose Iowa and Colorado. But if he loses Iowa and Virginia he needs to win New Mexico and Ohio.

  29. This is why it is such a dam’ shame that the Democratic Party elders, in their infinite wisdom, paid no heed to the candidate who started talking early and often about the mortgage crisis, the first system of the utter debacle that has become the U.S. financial markets.

  30. Totally O/T and shaky in seriousness, but shouldn’t the McCain campaign buy a new Prius for LIndsay Lohan for the help she gave him in her silly diss? One for Pam Anderson, too, because the PR that comes from her snitty ‘I don’t like Sarah Palin’ is just priceless.

  31. SHV, I’ll never forget the crash of 1987. I had just arrived in France as a student. When I got there it was a little less than 10 francs to the dollar. After black Monday the dollar was about 5.5 francs. My spending power was cut in half over night.

  32. Heidi, maybe they will start paying heed to her when Barack loses in a landslide come November. Economic worries like this usually play to the Dems but this time around I believe the American people are going to look towards someone with experience since it was an inexperienced President who helped us get into this big fat mess.

    And that someone is likely going to be John McCain.

  33. I was too young to care much about the 1987 crash, but I graduated college in 1989. Thank goodness I went right to grad school, because the job situation was pretty horrible, and only got worse until Bill came in and started cleaning things up.

  34. SUSA poll for Virginia today shows BO overtaking McCain and leading by three points. Not nice. Check out Charles’ blog for the details.

    SUSA poll for Ohio shows McCain ahead by four points. The qualifier here is that the poll covers four towns of Ohio only and may not be representative.

  35. Can’t quite remember where I heard/read this recently, but the margin between McCain of Obama is narrowing here in California. Seems like there was only 5 points or so separating them. There was also some speculation that California could go red this year for the first time since Reagan ran for the presidency.

    My gut feeling is that we will stay blue, but I’m hoping for the opposite. Wish I could remember where I saw that so that I can be a little more specific. Maybe I can track it down.

  36. Polls are showing that Obama has lost 15 points since June in the state of NY. 15 points! He would need a lot of traction to regain that back again. The interesting piece is that NY has 5.5 million registered Dems and only 2.7 registered Repubs. Wow!

  37. Somebody, please go to Congress and wake up Pelosi and Reid from their deep sleep. It’s not just bush who vacationed through Katrina. Congress writes laws that institutions must adhere to, but the Democrats can hardly say that it’s the Republican’s fault when this situation has been around for a long time. Pelosi received the helm in 2006 and went to sleep. Hillary spoke to NCRC about the impending subprime mess in MARCH 2007!

    In October 2007 the market got the first jolt as Citi and Merrill Lynch wrote down billions of dollars.
    We have no leaders in the WH or Congress.

  38. With the way things are going throughout the nation, they should have all candidates meet with a psychiatrist prior to the election. Anyone who seriously wants this job most be out of their minds!

  39. Have you seen Hillary’s OpEd on public transit
    Time for federal government to invest more in mass transit system

  40. Hillary, and a handful of others, are the only ones who can be singled out as leaders. The rest are just poor imitations. They pushed her aside for the sake of The One and we now we sit here and watch poll numbers slip sliding away. Unbelievable.

  41. PJ – I agree with you about Hillary and her leadership qualities. Most of the Congresscritters simply do not have them.

    As for NY, this is why I’m not worrying so much about the smaller swing states. If NY is already this close, it could very well go red.

    It’s Hillary country here, and we are none too happy with The One and his DNC enablers.

    By the way – folks from my old hangout have discovered my personal blog and are swarming me with nastiness. Send me some happy thoughts if you can spare them.


  42. OK, the numbers here in California don’t seem to be as good as I thought. Latest poll I could find (USA poll on Aug. 22) had Obama at 51%, McCain at 37%. Still, that’s much better than the almost 30 point lead Obama had at beginning of summer. Maybe a more recent poll will show even more improvement.

  43. Unfortunately, there is enough blame for both parties here. This didn’t happen overnight. The Glass Steagall Act that created a wall between banks and wall street after the great depression was dismantled during Clinton’s second term. And the Democrats have been sleeping with wall street/corporate interests for a very long time. Historian/commentator Kevin Phillips has documented the rise of this madness, including the Dem’s indebtedness to wall street, in his book “Bad Money” published last fall. This is much shorter than his usual books and a good primer for anyone who wants to understand the role of politics in this meltdown.

  44. plural, on September 15th, 2008 at 3:43 pm Said:
    No, it was just a general comment about today.

    If you want to see a real crash, look up the Crash of 1987. Over 20 percent in one day.


    One of my bosses made a fortune on that crash. He kept saying the market’s going to collapse and all his partners told him he was “doomsdaying.” 3 weeks before the crash he sold everything he had and plopped it into a savings, late Monday, he purchased bargain basement priced stocks and by Friday made something like $300,000. One of our partners will make a fortune today, he always seems to know exactly where to invest.

  45. This is about bad loans, which is traditional banking business, not about banks selling mutual funds.

  46. I’m a dem who was really impressed with Hillary’s economic proposals. She said that the mortgage crisis would feed into wide economic downturns.
    She said the mortgage downturn had to be addressed with immediate action. She put forward a plan as to what form the action should take.
    Enough said about that. Hillary should have been our next Pres.

    But, right now with what we’ve got… I’m rather annoyed at the talking heads on tv (THAT’s nothing new). Are they trying to freak people out? After all, that’s what happened in the great crash before the depression.
    Panic spreads. Confidence in the markets fail. People pull out of the market. Market goes lower. More people panic. More money pulled out, etc.
    The talking heads are practically sucking their toes
    (not like Dick Morris sucking– less repulsive than that, of course). It is intelligent and it is responsible for McCain, Palin to say that the market fundamentals are sound. The system does work when properly utilized.
    The mortgage fiasco drove this whole stink.

    The market will right itself. It will happen a lot quicker is the media-ites chill out and quit hitting the panic button (over and over and over and over).

    This issue will favor McCain. People want security in economic distressful times. Obama has no idea what he’s doing (half assed recycling of Hillary’s talking points will not serve). Who will “look” like security in the absence of a Hillary detailed economic plan?
    McCain will. He makes people feel secure. Why?
    Because he translates as someone who loves America. Obama translates as “who the hell IS this guy?”

  47. Carolyn Mann, on September 15th, 2008 at 4:33 pm Said:
    If that is the last major poll then I assume the polling companies assume CA is a lock for Obama. If there is major movement for McCain in the next CA poll then it will be even more damaging to the “O” campaign.

  48. Deregulation = lawlessness. No enforcement = no confidence = disinvestment = collapse.

  49. Obama’s platform is a terrible economic recipe. It’s touted as a return to FDR big-government-projects (not necessarily the best solution now) but it’s more like a return to Carter/Mondale policy (and partisan gridlock).

    Indeed, Obama didn’t just throw the Clintons under the bus – he threw the Clinton/Gore small, activist, pro-business policy under the bus. No one should be saying that Democrats know how to preside over an economic boom this year – Clinton/Gore knew how, and their ideas are nowhere in this year’s bloated platform.

  50. S, on September 15th, 2008 at 4:18 pm Said:
    SUSA poll for Virginia today shows BO overtaking McCain and leading by three points. Not nice. Check out Charles’ blog for the details.

    I will. So it’s looking like I’ll need to vote McCain/Palin and not McKinney. Oh well, whatever it takes!

  51. In that SUSA poll of VA they have Obama garnering 17% of the republican vote to McCain’s 80%. I find that extremely difficult to believe, and bucking the national trend in a big way. On top of that Obama is getting 87% of dems votes which is also off the mark for nat’l trends. I also don’t understand how Obama is besting mccain in the 50-64 age range 50-47%. That is also against the nat’l grain. As for indys in VA, McCain has a 4 pt lead on Obama. very strange numbers. Charles, HELP!!!!

  52. Europe is slowing down hard too.

    I saw a news programme the other day, which said that Denmark had officially gone into recession. It interviewed a number of Danes, most of them weren’t really feeling the bite-simply they were buying less consumer goods-spending money on food, heating, gas etc. But then Denmark has a strong social security net.

    Italians have stopped spending too-even hyper-markets are beginning to feel the pinch. However Italy has a very conservative Banking system, which felt the US mortgage fiasco less than other European countries such as the UK.

  53. I think it would be a nice gesture if the wankers getting golden parachutes would donate their not hard earned bonuses to the people affected by Ike and Gustav.

  54. Gary-From “beyond the polls” Sep 15:

    “McCain leads in three Virginia polls this week. SurveyUSA and FOX News Rasmussen had it 49-47, and CNN/Time had it 50-46. A 2-4 point lead would be expected after a McCain surge, so the state shifts to McCain this week. It remains in play, but I think Colorado and Ohio are better bets for Obama.”

  55. Run a muck, borrowing and lending will now end. Bloated value will (greed) will end. Try and get a easy loan now………Ha.

  56. Obama Has Issues And He’s Dead Wrong on All of them!

    Empty rabble rousing rhetoric

    This is the problem with blindly entrusting your future to an individual who has accomplished nothing of any consequence in his past. It’s not hope you’re feeling, its euphoric blind faith.

    As is always the case with career rabble rousers (aka community organizers), the fact that they have never been in the game does not hamper their ability to talk a good game. Obama says that words mean something and without any deeds to talk about, he’s right. However, compared to action and real experience, or in his case a complete lack thereof, empty words mean damn little.

    Read Entire Article: http://countusout.wordpress.com

  57. The strange thing is that being so big is what causes the problems in the first place, then when businesses fail, there’s still more consolidation. Goldman and PIMCOand few others on Wall Street pretty much tell the Fed and Paulson how it has to be or they’ll make sure it’s raining doom on election day.

    I read today where Pimco (and the mouthy Bill Gross) controls $812 billion in assets. That’s too big for one guy to control.

  58. actually, the real goal of globalization is to make us all wage slaves.

    ultimately though, globalization will fail…(population die off as well as the inability to send goods long distances because of the high cost of energy)

    I’ve always wondered what genius came up with the idea that MAXIMIZING CONSUMPTION to drive our economies could do anything but utterly collapse under its own greed at some point in time

    I’ve been studying this issue. 30 years tops…we’re all going to have a goat grazing on our lawns…and learning a LOT about self-reliance

  59. S — That SUSA poll is for all of Ohio I think. It was just sponsored by 4 news entities (one for each of 4 cities).

    The poll description on SUSA’s site says: “SurveyUSA interviewed 900 Ohio adults 09/12/08 through 09/14/08,” and some of the subset stats mention 5 different areas.

    However, if it were just 4-5 areas, they seem to be urban areas, so McCain ahead by 4 in Ohio’s urban areas, the ones most likely to vote for Obama, then if anything a 4 pt lead for McCain would be eNORMous.

  60. Obama’s strategy is now….The sky is falling. In fact, thats is the DNC’s strategy. Vote Obama or the world end and it will be your fault……You stupid, sheep.

  61. Why am I a black box?

  62. Sorry. Nevermind. I figured it out.

  63. Gary, those poll numbers must be what they project O would win by after they implement their “vote counting software.” Just a scary thought that occurred to me. I hope not.

  64. The long and short of the present wallstreet meltdown is that whoever has the most cash or liquidity, gets to clean-out; snapping companies here and there; buying up stocks at cents to the dollar then wait for the prices to go up again. Off the top of my head: The Carlyle Group, Warren Buffet, the oil consortiums, the royal family of Saudi Arabia, Chinese financial groups, etc.

    George W. Bush would have succeeded what the oil companies wanted all along: drilling in Alaska; Santa Barbara and all the coasts around the U.S. and the people would gladly accept that it is the only way and to hell with the environmentalists. I just wish that they would at least make sure that the oil they drill in the U.S. stays for use of the U.S. and not exported somewhere else. We need to examine the bills that they design in congress. They will rush this through congress; they will not risk waiting for McCain to be inaugurated because he is bound to ask more questions; he would want to see the real benefits to the Americans and not the oil companies.

  65. Felizarte, I think McCain and especially Palin will be watching that like hawks. She was not merely a “pro-Big Oil, pro-drilling orgy” governor, as the left is trying to paint her.

    She demanded openness and transparency in the bidding process, strict oversight, and the benefits of that drilling going BACK TO THE PEOPLE, not merely into the pockets of Big Oil. She imposed a TAX on them, as well as making them bid competitively rather than making cushy deals with state kickbacks in back rooms. She said repeatedly that she had no problem with the companies making a fair profit, but they WERE NOT going to do it by screwing over the people of Alaska, and looting their natural resources willy-nilly.

    She is a tiger on this issue. I would love to see her take this on on a national level.

  66. (testing…do I have an avatar now?)

  67. He projects everything he does upon everyone else.

  68. I agree, wcmb. That is why you can see congress scampering to pass a bill more to the liking of oil companies that Bush will of course sign. McCain/Palin will certainly go through any bill with a fine-tooth comb.

  69. he he uh heh I said thrust.

  70. Oh of course. It’s all Hillary’s fault.

    Couldn’t be Phil Gramm’s fault, now, could it?

    Gawd, Obamabots are boring.

  71. I agree with salmonrising regarding the repeal of Glass-Steagall being at the root of our current economic woes.

    It is
    i not
    just about subprime loans. It’s more about the way Wall Street bought and packaged those loans as the hottest new investment vehicle. When the bad loans began to fail, the investment bankers were left holding the billiion$ of those packages that could no longer be marketed.

    As for G-S being repealed in BC’s 2nd term – too true; but that is after the Republican-controlled Congress (led by [yes, madamab] Phil Gramm, former Treasury Sec) passed veto-proof legislation.

  72. Lance Thruster,

    You ‘re an asshole!!! Thrust your ass out of here.

  73. james357, on September 15th, 2008 at 5:26 pm Said:
    “The strange thing is that being so big is what causes the problems in the first place, then when businesses fail, there’s still more consolidation.”

    Which is exactly what makes me feel uneasy about the Bank of America buyout of Merrill Lynch. Being bigger doesn’t mean there can’t be a failure. AP has a pretty good story about this “solution” to the Merrill Lynch problem.

    “Merrill Lynch’s shotgun sale to Bank of America will create the nation’s largest financial services company – one that some believe is too big to fail. Still, no one is breathing easy just yet.” The story details some of the problems that B of A could encounter. It’s here:

    By the way – anyone notice the blog stats??? The Confluence is close to 3,000,000 hits!!!!! WHOO HOO!

  74. The Brits explain the sub-prime crisis.

    This mess did start with the commercial bank/mortgage companies and the bad mortgages and then the investment banks packaging them as structured investment vehicles.

  75. I think by now, Obama raked more from Wall Street than incumbent W in 2004.Bush had 10 million – Obama was praised back in August for having 9.6. What would Wall Street expect a totally inexperienced unknown to do for them? i wonder.

  76. Right now Rep. Rangle is being battered and they are trying to move him out of the Ways and Means Chair so they can dump this huge dept on the taxpayers. We should look at supporting Rangle – but most of all inundate Pelosi with mail – both snail and otherwise to let her know that she messed up big time and that we’d like to see her GONE. That she is one of those primarily responsible for the economic mess the country is in. Let her know that we all know that she doesn’t know what she’s doing, that Hillary warned of this two years ago, and Hillary would know how to get us out of this mess without hurting those who can least afford it.

    No Biden for Hill swap – Hill a the top of the ticket and she gets to pick her own VP

  77. our Democratic congress has had 2 years to try and rein in the financial industries. What did they do…NOTHING. Matter of fact, the voted FOR most of the policies that have helped get us here (pre & post 2006).

    We are so screwed

  78. blah blah blah diddly blah!! WAHHHH!!!!

  79. Gee, Lance Thruster, that last comment has tipped your hand. You’re really Obama using an alias.

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