Financial Markets Decline & Return
By: Ken Hughes
The history of the American economic structure has been consistent with ups and downs from the beginning. The ups are always credited to the brilliance of upper corporate management, the tenacity of the individual entrepreneur and the hard work of labor. The downs are the total responsibility of the other person. Namely presidents as if one person can cause the collapse of an entire nationâ€™s economic structure. Congress has the authority to block most presidential requests should they choose. Presidents have no such recourse. Therefore when congress blames a president for excesses the ball is really in their court.
Thereâ€™re a lot of people responsible for the current decline of the markets. There were warnings the storm clouds were gathering as far back as ten years ago, The Bush Administration sent bills to congress requesting limitations be placed of lenders and barrowers. Allan Greenspan warned of a potential collapse of the real estate markets if lending werenâ€™t restricted. John McCain spoke out on the subject warning of the coming crash if something wasnâ€™t done.
Why with all the advanced notice wasnâ€™t something done sooner? Several congress persons were heavily invested in Fannie May and Freddy Mack. The management of these two firms had personal connections to both houses of congress. Friends donâ€™t snitch on friends.
By the time the big tent of FM and FM began to collapse and their management had effectively cooked the books covering the coming collapse the wise investors were advised to get out leaving the lenders and the borrowers holding worthless paper. If nothing else pisses the public off it should be that congress and special interests have stolen their money in the guise of social engineering and pure greed. Nancy Pelosi blames Bush for the financial situation the country finds itâ€™s self in when in fact it was her failed leadership of the house thatâ€™s to blame. Nancy Pelosi should realize when pointing a finger three fingers are pointing back at her.
President Bush and his administration backed up by John McCain and Allen Greenspan to mention a few warned of the potential for disaster if corrections werenâ€™t made in lending practices. Congress failed to act, as a matter of record they suggested it was all a political ploy on behalf of the Republican leadership. Congressional liberals went on to legalize lending irregularities.
Shortly after the turn of the 17th century in 1630â€™ish a group of pilgrims remained on the ship Mayflower unwilling to disembark until a consensus was reached on how the new colony would be governed. After several daysâ€™ 41 men out of 100 passengers finally agreed to abide by a consensus of the majority on what would be the rules for the first citizen government in America. The Mayflower Compact provided the bases of a government â€œOf the People, By the People and For the People. The text of the Mayflower Compact has been lost in time. The records are given to us through the years by word of mouth and written speculation. We know this weekâ€™s session of congress wasnâ€™t much different than those early pilgrims experienced on the Mayflower. It was a time when the rules of command slipped out of the hands of the Monarchy and into the hands of the people for the first time in history.
Recently weâ€™ve seen the power of the people rise to the surface. First when the concept of earned citizenship would have become irrelevant had the recent immigration legislation been allowed to become law? And next when the liberal wing of congress blocked domestic oil production and now with a bill that rewards greed and financial incompetence the public has spoken to congress again. When the people speak congress listens and acts submissively.
The New [Raw] Deal of 1933 proved the government canâ€™t manage the economy. FDR created a government work force building roads in national parks no one could afford to visit. Building lodges in national parks no one could afford to stay in. FDR extended what should have been a minor recession into a 10 year depression all because FDR believed in the Marxist doctrine of government socialism. World War II brought America out of the depression not anything Roosevelt did.
The 700 billion dollar bailout was a Roosevelt New Raw Deal all over again. The government would have gone where democratic governments has business going, into managing the private sector. Some degree of government assistance is needed but not this absurd instant grits fix congress tried to push through this week.
Any bill submitted to congress after dark should never see the light of day.
We should reflect on the words of Abraham Lincoln
â€œWe can not strengthen the weak by weakening the strongâ€
â€œWe can not help the poor by destroying the richâ€
â€œWe can not lift the wage earner up by pulling down the wage payerâ€
The publics rejection the bailout bill says the American people have more confidence in this countries ability to respond to a crises than congress. That says the country need to replace congress and start new with term limitations on service in both houses of congress.