This article (click here) does an excellent job of framing two of the worst economic problems of the last eight years, except of course the Billions that have been wasted in "George's Excellent Adventure in the Desert", the Iraq War that the Bush administration promised Congress would "pretty much pay for itself". What is fascinating is to note the role played by Senator Phil Gramm, John McCain's top economic advisor, widely assumed as McCain's choice as Treasury Secretary, if McCain is elected. Given Gramm's key role in putting a huge dent in our economy recently, one has to wonder. Is McCain nuts, or just really, really stupid? In the last huge banking meltdown, where was McCain then? Lobbying a regulatory body, asking them to lay off his good friend Charles Keating. That small delay lead to the bailout of Keating's bank costing the US Treasury $3 Billion, the costliest bank rescue until that time.
John McCain, and his economic advisor, would appear to have a long record of accomplishment in regard to the economy. A really bad one.
Oh, and that "Enron Loophole" that Gramm championed? That has allowed unregulated speculation in oil futures that contributed to the rise in the cost of oil recently. Thanks a lot, Phil! I hope we can return the favor some day.
Arthur
John McCain, and his economic advisor, would appear to have a long record of accomplishment in regard to the economy. A really bad one.
Oh, and that "Enron Loophole" that Gramm championed? That has allowed unregulated speculation in oil futures that contributed to the rise in the cost of oil recently. Thanks a lot, Phil! I hope we can return the favor some day.
Arthur
1 comment:
Jon said...
"A Concise Explanation of How This All Happened"
Excerpt from linked article:
"McCain's former economic adviser is ex-Texas Sen. Phil Gramm. On Dec. 15, 2000, hours before Congress was to leave for Christmas recess, Gramm had a 262-page amendment slipped into the appropriations bill. It forbade federal agencies to regulate the financial derivatives that greased the skids for passing along risky mortgage-backed securities to investors."
"And that, my friends, is why everything's falling apart."
Now folks, Arthur is telling us that Phil Gramm sneaked 262 pages into the Commodity Futures Modernization Act of 2000 that was passed by congress and signed into law by president Clinton on December 21, 2000 that would lead to financial meltdown in 2008 and nobody had a clue that it was there. So what if he sneaked in a mandate to nuke Fidel Castro's house in that same bill and because nobody reads the complete law, Clinton signs it and we are in total war the next morning.
Assumption, Bill Clinton signs bill which noboby has read, into law without a clue about what is in said law? Ludicrous!
Time does not permit nor is there space available to show that this "Concise Explanation" or any similiar succinct explanation is absurd beyond belief.
We do know, according to Harry Reid, "no one knows what to do'' at the moment, meaning lawmakers in general. Well duh.
And according to the New York Times on Sept 11, 2003, that George Bush tried to create an agency to oversee and regulate Fannie Mae and Freddie Mac.
We also are informed by same article that Barney Frank ranking member, and now chairman, of House Financial Services Committee opposed Bush administration and Congressional Republican efforts for the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis. And I quote:
"These two entities -- Fannie Mae and Freddie Mac -- are not facing any kind of financial crisis," said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee.
"The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing."
Chris Dodd, ranking member on the senate banking committee, agreed and Blocked the regulation of Fannie and Freddie in the senate in 2003. Most recently this summer, now chairman Dodd said this about the new Bush efforts at regulatory oversight of Fannie and Freddie, and During this period, Dodd denied rumors these firms were in financial crisis. He called the firms "fundamentally strong" said they were in "sound situation" and "in good shape" and to "suggest they are in major trouble is not accurate". He suggested observers were panicking "There's sort of a panic going on today, and that's not what ought to be. The facts don't warrant that reaction, in my opinion,"
http://en.wikipedia.org/wiki/Chris_Dodd
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