While most of the Bush Administration appears to be walking in lock step when it comes to policy these days, a few are breaking rank. Not everyone believes that the worse is over and they’ll even voice their dissent with reporters.
It appears that there are massive cracks within the Bush administration as Bush bank regulators break ranks with the Administration over the substance of the bank bailouts. The Chairwoman of the Federal Deposit Insurance Corporation reportedly told Reuters that she doesn’t understand “"Why there's been such a political focus on making sure we're not unduly helping borrowers but then we're providing all this massive assistance at the institutional level.” (Reuters 10-16-08)
According to several publications, there is a growing unrest within the Bush administration over exactly how to apply policy to an increasingly volatile economy. Many within the administration continue to pat themselves on the back for their “massive bill that does a lot for homeowners” without admitting that the “assistance” is a drop in the bucket and leaves millions of homeowners holding the bag, or rather, holding the eviction notice.
The bailout, which rescued institutional investors, comes at a critical time—just before an election. Many look at what was passed and wonder how long it will take before the black hole that is the derivatives market, sucks up the bail out money and turns the entire economy into a slag pile.
But the Bush Band keeps on playing. Despite increased evidence of economic catastrophe, Lame Duck, Inc. remains a bastion of deregulation, denial and dogged refusal to see the handwriting on the wall.
The problem with the bail out is not only does it fail to bring relief to more stressed out homeowners, but that it is geared to the institutional investors—the bankers and speculators who tried to create wealth out of thin air and who are now reaping the rewards of their toxic investments.
Today, those “financial instruments”, the risky investments called securitized mortgages, are little more than bookmaker’s slips—with a lot less value than a betting slip. Speculators and banks speculated, and lost, and now the American taxpayer is stuck with the bill. This is a bill which will cross several generations, yet, those whose grandchildren and perhaps great-grand children will be burdened by this bailout, are themselves losing their jobs, homes, investments and retirement funds.
College funds, annuities, pension plans and retirement investments are tanking faster than a hurricane can sink a leaky boat. Many are now worth a fraction of their former value, while retirees and recipients of annuities and pensions wonder how to make ends meet with less money, higher food, gas and utility payments.
Given the more than 2,000,000 adjustable rates which will reset in 2009, given the worsening economy, job loss and out of control inflation which has become the hallmark of this economy, the question remains: how do we deal with this economic terrorism?
We continue to fight a two front war, which has made enemies around the world, and which has not only failed to curtail terrorism, but actually fuels it. Our treasury has been sucked dry by this ill-conceived forays into nation building, yet many remain deluded into thinking that we are bringing democracy to the Middle East.
While a few Bush supporters within the administration break ranks, the course set by the neocons in the early days of the Bush White House remains unbowed and unbroken. Despite evidence to the contrary, supporters of the administration’s military policies believe “the surge is working.”
With reported millions of Iraqis dead, an American economy depleted, and the threat of a world wide depression, the Bush train wreck keeps a chugging along, crashing willy nilly as it goes. We have an economic earthquake underweigh, pure and simple.
Investments, retirement funds, and real estate have lost billions of dollars in value over the last few months. Foreclosure is so prevalent that foreclosure legal advertising is turning the classified ad section of the nation’s newspapers into a gold mine.
Any one with a lick of sense is scared to death of the looming economic crisis that is upon us, but our politicians vie back and forth over whose band aid is the biggest. Nobody wants to admit that a band aid is useless when our financial arteries have been severed.
What makes this whole situation so insane is that we are not preparing for this economic disaster. We’re still buying junk we don’t need, living beyond our means, whining about trivialities and allowing the electoral dog and pony show to divert and distract us.
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