You always have to figure that a president is doing something right when the opposition goes off the deep end. And Charles Krauthammer republished in the Spokesman-Review, went off the deep end in absolutely pure hysteria. Only now do we hear about a president spending way too much money, as long as the money is being invested in the U.S. On the other hand, and this is what I caught as a point of greatest interest, was that he was literally whining about a lack of a program for the banks.
Excuse me, but the banks got themselves into a big mess by engaging in risky ventures. And they did a lot to hurt their own customers while they were about it. The news media such as Time, Newsweek, U.S. News & World Report were prepared to at one time describe the sort of risks banks were starting to engage in some 2 decades back, following the collapse of the S&Ls. That in fact the banks were following the same course of action that finished off the S&Ls that resulted in billions of dollars in taxpayers’ bailouts. Such prescient reporting that would ultimately prove true in the last year. Of course it would take time before risky ventures would begin taking their toll. But once it happened, it might also be nearly impossible to fix. Yet, Krauthammer who would have dismissed such early warnings as so much “liberal press,” now wonders on the level of hysteria why the banks aren’t getting a program to fix them, yet. Well, that would mean regulation, wouldn’t it? And regulation would be bad.
When it comes to hysterical reactions, those who suffer them lack a clear and concise argument. Indeed, they have no idea how quickly their thrashing around becomes an upsetting of the apple cart of their own ideology. The people don’t matter. We shouldn’t spend way too much on them to give them back jobs and paychecks. Only the banks should, that managed to do a lot to destroy both. Those who ran the banks, to include WaMu (Washington Mutual) did have choices to make. Profits could have been obtained had those banks charted a safe course. But, apparently greed was more desired than keeping one’s balance sheet in good order. Thus the collapse of WaMu and the closure of up to 16 banks now. Wouldn’t conservatism preach against greed? Isn’t greed the biggest threat to capitalism? It sure looks like it from here.
Lou Dobbs, around a year ago, got called a socialist for doing a lot of preaching against this, the sort of thing being described above. Accused of protectionism for railing about businesses outsourcing good American jobs overseas. Get with the times, Dobbs, right? Globalization is for real. But when the banks to include Citigroup started getting into well publicized trouble over a year ago, the were seeking global investors too to infuse them with cash. So, ultimately, what might have been localized to one nation and perhaps more easily fixable at one point. Became instead a nightmarish scenario that started taking the world banking system down into the abyss. How do you fix the world financial system? Well, I guess you would do as President Barack H. Obama is trying to do now, and spend money and do some re-regulating of old financial practices. As is Great Britain trying to save the Bank of England. China trying to save its own financial system. Too bad Krauthammer isn’t taking a good look at the facts.