Ok, so how long do we now have to listen to McCain lie about his position on the economy? His position on regulation of banks? Here is what he tried to do in 1995:
In early 1995, after Republicans had taken control of Congress, Mr. McCain promoted a moratorium on federal regulations of all kinds. He was quoted as saying that excessive regulations were "destroying the American family, the American dream" and voters "want these regulations stopped." The moratorium measure was unsuccessful.
And what did he state in March of this year?
"I’m always for less regulation," he told The Wall Street Journal last March, "but I am aware of the view that there is a need for government oversight" in situations like the subprime lending crisis, the problem that has cascaded through Wall Street this year. He concluded, "but I am fundamentally a deregulator."
While today's economic news isn't as bad as yesterdays, yet anyway, the indication is clear that the LACK of regulation has gotten us into this mess.
AIG is on the verge of failure, Washington Mutual isn't doing so hot, and they are both now facing a shareholders run:
For the first time in more than 70 years, a psychological "contagion" is threatening to drive financial concerns out of business, but this time American International Group Inc., Washington Mutual Inc. and others are facing a shareholder run.
Some economic historians say a sporadic wave of bank failures in 1930 triggered contagion, as depositors preempted similar failures of their own banks and perpetuated the crisis by demanding their money. In a series of bank runs, lenders fell like dominoes throughout the early 1930s, and the resulting tightening of credit contributed to a lasting recession.
And McCain, as late as MARCH, wants continued deregulation. What is the solution offered today by McCain? A commission! Yes, let us sit and discuss how bad things are and make recommendations, but remember, none of those recommendations that include "regulation" are going to be supported by the deregulator McCain.
Oh, and now mortgage rates may skyrocket, and there is nothing that the US can do about this move, further, an upward spike will effect ARM loans that right now may be solid, but with a jump like this, may go into default as well:
The overnight Libor rate in U.S. dollars soared 3.33 percentage points to 6.44 percent today, its biggest jump in at least seven years, according to the British Bankers' Association. Many Libor-linked U.S. mortgages don't limit the size of a loan's first adjustment, with caps of 2 percent on subsequent changes. That means a monthly mortgage bill could double or even triple when it first resets.
``If the Libor market seizes up and stays that way, it's going to complicate everything,'' said Bill Fleckenstein, president of Fleckenstein Capital in Seattle. ``What you are seeing is the unwinding of the financial system as we know it.''
This is ugly folks, and though the Dow is not down as this diary is being typed, the indicators are not pretty for the future.
McCain is our centuries Hoover, only we have the opportunity to avoid allowing McCain to be in charge of a mess that our nation hasn't seen since Hoover.
UPDATE I: Feds will not lower interest rate, DOW down sharply
And AIG has one day to figure out what to do, and talks with private companies aren't going all that well.