Lonesome Tree in Sandhills

Sunday, September 28, 2008

True Bailout Risk: Taxpayer Revolt?

Congress received a warning letter signed by 100 leading U.S. economists, who are working very hard to get their voices heard in response to the Paulson-Bernanke Bailout Plan being negotiated as I write. Letter To the Speaker of the House of Representatives and the President pro tempore of the Senate:

The letter (signed & dated 9/25/08) is the consensus of 100 leading economists:

3 Nobel Laureates & economists from major universities, colleges & institutes. [MIT, Chicago, Stanford, Harvard, Yale, Duke, Northwestern, Notre Dame, Vanderbilt, Stockholm, California (LA, SC, Berkley, Davis, Santa Barbara, San Diego), Columbia, John Hopkins, Indiana, Michigan, Ohio State, Iowa (UNI, UI, ISU), Wisconsin, Pennsylvania, Minnesota, Kansas, Washington, Maryland, New York, Texas (Austin, A&M), Louisiana Xavier, George Mason, Vassar, Hoover Institute, Chapman (Nobel Laureate), Boston College, Dartmouth, Miami, and the London Business School.

Friday, September 26, 2008

Whaaa's Up Wall Street?

Perhaps the investment banking debacle will force the political chatter off-stage for awhile until it gets digested by the Chattering Masses on NonsenseNews. Reagan's trickle-down economic theories (voodoo economics) that have dominated markets & regulations for 28 yrs. are much like Rev. Wright's "chickens coming home to roost."

McCain's good buddy, Phil 'Nation of Whiners' Gramm of TX led the Republicans to sponsor & pass the Financial Services Modernization Act of 1999. It passed on a vote of 54 (GOP) to 44 (Dem) w/2 present. [S. 900 An Act to enhance competition in the financial services industry by providing a prudential framework for the affiliation of banks, securities firms, and other financial service providers, and for other purposes. Ck out the Roll Call Votes]

These "trickle down" economic policies were bound to get on that "free market" slippery slope leading to this mortgage/derivative debacle. So, now Wall Street's 'Welfare Kings' cry, "HELP US!" - maybe we do need regulatory babysitters after all.

McCain has indicated he will appoint Phil Gramm as Treasury Secretary! BIG reason to support Obama - smarts, resilience & demeanor attracts the best brains in the country to work with him.

Old Fed Reserve Chair Supports Obama

Does anyone remember 10% rates on 20 yr. mortgages (no ARMS then) & comparable inflation rates, then economic stagnation? Okay... can anyone remember Paul Volcker, who led the Federal Reserve from 1979 to 1987 (Carter & Reagan)? No? He’s that old guy who preceded Alan Greenspan & handled the 1980's debacle. Well, the nation may need him again... and thankfully, he's supporting Obama. Paul Volcker about Obama in Jan. 2008: “After 30 years in government, serving under five Presidents of both parties and chairing two non-partisan commissions on the Public Service, I have been reluctant to engage in political campaigns. The time has come to overcome that reluctance,” Volcker, a Democrat, said in a statement today. “However, it is not the current turmoil in markets or the economic uncertainties that have impelled my decision. Rather, it is the breadth and depth of challenges that face our nation at home and abroad. Those challenges demand a new leadership and a fresh approach.” He concluded: “It is only Barack Obama, in his person, in his ideas, in his ability to understand and to articulate both our needs and our hopes that provide the potential for strong and fresh leadership. That leadership must begin here in America but it can also restore needed confidence in our vision, our strength, and our purposes right around the world.” Volcker Joins List of Obama Backers The Wall Street Journal | January 31, 2008