
Political writers with equal skepticism for both
sides are hard to come by, investigative reporters too far and in-between and
top-notch writers on the economy almost non-existent. Pearlstein must have
somehow missed the opportunity of a Harvard MBA. He is not of that ilk and a
man of rare insight in a profession that has lost it along the way.
(Washington
Post-A Delicate Balance, By Steven Pearlstein)
You
know something's up when both the secretary of the Treasury and the chairman of
the Federal Reserve give speeches calling for a new mechanism to allow them to
manage the orderly liquidation of a major financial institution.
You
have a sense that things are getting desperate when General Motors has to offer
six-year loans at zero-percent interest to unload its gas-guzzling trucks and
SUVs, and people openly speculate about how long it will be before the
automaker runs out of cash.
And
you can feel the foundation shaking under Wall Street when Fannie Mae and
Freddie Mac have to pay three-quarters of a percentage point more to borrow
money than the U.S. Treasury, which implicitly guarantees their debt, and top
government officials feel compelled to reaffirm their support.
We're
nearing that delicate point in the cycle when even the usual cheerleaders have
hung up their pompoms, consumer and business confidence has disappeared and
investors are driven mostly by fear rather than greed.

Disaster takes its toll on credulity and the ten
years after the ’29 crash dropped the nation to its knees, adding desperation
after desperation, as Ford cars cost $500 a copy and no one had the five
hundred. Hell, no one had five bucks, at least not to spare. There were three
cures to this misery.
1. Franklin
Roosevelt’s massive public works programs, a Democratic effort to pull the
country back to a reasonable level of employment, that would not be matched
until a Republican president Dwight Eisenhower launched the Interstate Highway
program just after WWII.
2. World
War Two itself, a struggle so intense that all hands were at work churning out
the material of war.
3. The
G.I. Bill, which educated beyond all precedent an entire generation of homeward
bound military personnel from the war. Partly, the bill prevented the wholesale
dumping of soldiery on a delicate jobs market, but the unintended consequence
was to ultimately provide the best-educated workforce the nation had seen to
date.


.
. . A financial crisis is not a morality play. What matters most isn't the
precedents that are set, the amount of taxpayer money that's implicated or
whether people are made to suffer fully for their financial misjudgments. In
the end, what matters most is that we get through it as quickly as possible
with an economy and a financial system intact.

What I am scandalized by is the money that has been
made available from Wall Street and the business community to pay off the most
corrupt Congress in memory (and my memory extends through eight decades). Those
who worried they wouldn’t get what was
coming to them. If they finally do get what they have coming, it will be
because
- Hedge
funds are totally unregulated, lobbying and bribing their way past regulation.
- Military
contractors (icons like Boeing and Lockheed-Martin) regularly commit fraud
against paid-off Pentagon administrators, protected in turn by paid-off
Congressmen and Senators.
- Earmarks
are such a source of mutual profit between crooked representatives and their
equally crooked constituents, that they threaten the basic terms of self-government.
- Healthcare has been made hostage to the profiteering of pharmaceutical
companies, doctors, insurance companies and third-party providers.
- Congress
is so swamped by bribery that the likes of Blackwater and Halliburton have
burst the dam of public intervention.

America is losing on all fronts as our small town
merchants are destroyed, industrialized agriculture wrecks the safety and
balance of our food supply, we declare the undeclared, spend the unearned,
torture and bomb and lie our way through foreign policy as if we are telling
truths.

Welcome (you Boomers and the offspring you now find
back in their upstairs bedrooms) to the 'service society.' If your life seems
less productive, your family needs two (or three) jobs to survive, your kids got
a crappy education, you worry about retirement and reach for Valium and Viagra
to get through the week . . .
. . . dial 9 and remain on hold for 40 minutes while
you are assured your business, or problem (or potential suicide) is very important to us.
Compared to where we find ourselves, Mr. Pearlstein,
at the end of a forty-year pornographic consumerized massage, a morality-play might be a
snap. If not exactly a snap, perhaps better medicine than Viagra or Valium.
But beware the side-effects.
In the substitute for morals that we have eagerly accepted and welcomed
into the lexicon of what it means to be
an American consumer, an economic meltdown might be the best medicine.
____________________________________________________
Media comment;
- Dallas Morning News-Phil Gramm's alternate universe
- Detroit Free Press-Worse to come on foreclosures?
- CBS News-Paulson And Bernanke: Economic Melt-down "ongoing"
- MarketWatch.com-Options expert calls Fannie, Freddie shares 'worthless'
- Baltimore Sun-Fannie Mae, Freddie Mac meltdown?
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