Humpty Dumpty sat on a wall,
Humpty Dumpty had a great fall;
All the King’s horses, and all the King’s men
Cannot put Humpty Dumpty together again.
Did you know Humpty Dumpty was a Royalist cannon that couldn’t be put back into action?
So who can put the economy back together? Is this going to be like putting Iraq back together?
Awhile back I caught a snippet of an O’Reilly interview with Obama about Iraq and his criticism of Bush’s policy. He thinks “the Iraqis still haven’t taken responsibility.” So I’ve paused to think about getting someone else to “take responsibility.”
Obama supports an Iraqi pullout to get the Iraqis to “take responsibility.” But getting someone to “take responsibility” is also a tv show. (Yes, Jen’s influence is here.) But that technique is called an “intervention.” I think it’s also called “tough love.”
In his NYT piece Senator Obama says:
Only by redeploying our troops can we press the Iraqis to reach comprehensive political accommodation and achieve a successful transition to Iraqis’ taking responsibility for the security and stability of their country. Instead of seizing the moment and encouraging Iraqis to step up, the Bush administration and Senator McCain are refusing to embrace this transition — despite their previous commitments to respect the will of Iraq’s sovereign government. They call any timetable for the removal of American troops “surrender,” even though we would be turning Iraq over to a sovereign Iraqi government.
Hmmmm, turning “Iraq over to a sovereign Iraqi government” that–as the premise of this argument–is lacking a “comprehensive political accommodation.” That sounds like the sovereign government isn’t entirely sovereign. And maybe that’s like an addict, an independent adult person who is not entirely “sovereign.” So, sure, quit supporting the “addict” and force him to “take responsibility.”
But note, the interventionists don’t kick the addict to the street when he wants to reform. I think they get checked into rehab. They need a little “protection” until able to guard themselves from their old “friends.”
And what about this “financial crisis.” Who’s going to “take responsibility”? Who is going to do the “intervention”?
Again, there has to be a judgment about what is healthy and what isn’t, what is just and what is unjust. The healthy needs support and the unhealthy needs to be curbed. And I suppose the “intervention” may take some time.
A “bailout,” however, doesn’t sound like an “intervention”; it sounds like “enabling.”
I’m skeptical about the proposed “cure.” And I’m skeptical about “bipartisanship” as the solution. I think too much “bipartisanship” contributed to the problem. I think President Bush and the Democrats want “bipartisanship” so they can be “enabled” and not make the real changes necessary.
Note that President Bush mentioned “working with Congress,” “a spirit of cooperation,” and being “bipartisan” but barely mentioned Congress as part of the problem.
Note President’s Bush’s idea of the problem. First he mentioned that America is a great investment. He mentioned low interest rates as part of the problem.
But investment and low interest rates are not a problem. Were the “investment” a loan and were we not paying, then that would be a problem. Investment and low interest is not a problem but a great benefit that typically comes from a good credit rating.
Second, President Bush gives a reason that sounds more substantive. High risk loans and securities created by Freddie and Fannie were bad deals, but they found buyers and sold the securities around the world because they appeared to be backed by our government. That is, we’ve borrowed money from foreign countries to finance how we live and we don’t dare tell them to hold the securities and take the risk.
And with defaults on bad loans, housing prices quit rising and that led to more defaults. And who wants to pay more for a house than it’s worth?
But there’s the clue. People run away from their debt to save themselves.
And guess what? Even with backing these risky securities created by Fannie and Freddie, we still won’t be paying what we owe. We’ll go back to “tax and tax, spend and spend.” We have NO plan to pay what we owe. President Bush mentioned no plan to stop the “excesses” of Congress spending money without a plan to pay what is owed.
Bush said this problem “developed over a long period of time.” But he didn’t suggest it went back to FDR, to “tax and tax, spend and spend,” like Reagan understood.
From the beginning of Social Security recipients received more than they ever paid. And we continue to support politicians who promise to give us money we don’t have to pay back….
From the nation’s beginning, however, we’ve had real “interventions.” Alexander Hamilton did the first one. And we had lower interest rates that were not a “problem.” Reagan intervened and reduced the misery index and strengthened the dollar. A real “intervention” can be done, but I didn’t hear it coming from President Bush. And I wish Senator McCain would address it more….