I was a history major, and the Great Depression was always the most fascinating period of American history for me. I tried to imagine what it must have been like to have gone through the 1920s, to have been around when the country felt it was inextricably bound for continued prosperity, only to see the storm clouds gather quickly and see despair follow quickly. For just one day, I would have liked to have walked the streets of America in 1932 to observe the fear and disillusionment of the country. Now, unfortunately, I fear that we are headed down the same path.
I’m no economist – damn near flunked economics in college – but a reasonable intellect and decent common sense can see the ripple effects coming from what happened today and in the past eight years. Now we can only hope that Obama is the new FDR.
Oh, I have little doubt now that he will win the election. McCain’s gambit last week has backfired. He has no credibility on the only issue that now matters – the economy. Once Palin is unmasked on Thursday, McCain’s utter lack of judgment will be laid bare. But I fear this Obama victory that I have fervently wished for since January will be taking place under the worst circumstances
Just as Herbert Hoover had lost all political clout long before his election lost, George W. Bush’s utter lack of persuasiveness with the political party that used to kiss his feet was made starkly clear today. As the crisis worsens, he will be powerless. He and Paulson – and to be honest, the Democrats – failed to explain to people angry about the proposed bailout why it was necessary. Smart people asked me – no expert – to explain why this was needed. I said that everything that people take for granted – credit cards being accepted for purchases, your employer’s payroll being able to be met, etc. – hinged on the credit markets unlocking. The stock market crash is important, but it’s not the main event. It’s just the mostly commonly used gauge because there’s a number attached to it that serves as the daily score. As far as I know, there’s no such thing for the credit market, which is the bigger deal.
So now it will be for Obama to clean up. He will have to act wisely, but quickly. He must reassure, as FDR did, that things can turn around. He must enlist all of us to play our role. It was once said that FDR had a second-class intellect but a first-class temperament. We are fortunate that Obama has a first-class intellect and a first-class temperament. God knows it will be needed now.