The Congressional Republicans live in a different world than the rest of us.
The web site of the House banking committee is all about repealing the Frank-Dodd Bill.
It is as though these people forgot how irresponsible banks nealy put us all in the poor house for years to come.
Republicans repeat thbat the more state jobs they cut, the happier big corporations will. Then they will begin to invest in jobs here in the good Ole, USA.
Now House Republicans are busy trying to derail the efforts of the states' attorneys general to work out a sensible settlement to the mortgage crisis. Some of them insist the constitution forbids Elizabeth Warren from talking to any of the state AGs or helping them coordinate their efforts.
The craziness has spread to the Comptroller of the Currency's Office, which is again carrying water for the banks. Meanwhile, the Justice Department is doing nothing constructiv e.; This reminds us that Eric Holder was first appointed by Ronald Reagan/
Democrats should be reminding people that the financial crisis came largely from the misbehavior of the banks. They should point out it was only last week that most of the big banks were released tight controls. Things are still so bad that 600 banks are kept under restrictions.
Democrats are saying little, letting the GOP narrative sink in. They say it was all abiout putting too many ordinary folks in houses they did not deserve--particularly blacks and other non-whites.
Obama seems to have joined in the other Repug narrativ e-- cutting state jobs andc funds for those who most need help will jump start the economy. Sure!
There is a danger that the policies the GOP is imposing will lead to a bout of stagflation.
The inflation could ccome because commodity prices are high, and Japaanese reconstruction will drive them higher.
Stagnant demand will continue because ordinary folks are under pressure because their share of the GDP has been shrinking. Don't bother with the morality of all this. From an economic perspective, the problem is continued underconsumption.
Add in the continued weakness of the banking sector and the non-revival of the manufacturing eector, and we have the possibility of either ye3aqrs of sluggish growth--like Japan-- or stagflation.
The former would best benefit the GOP. It wants to take up wiere Reagan left off in the early eighties. He used stagflation as an excuse to slash away at the safety net and hammer the unions. There was much public resistance back then, but the electorate eventually rewarded him with re-election in 1984 when he sold them the story that it was morning in America.
This time, there might be less resistance. The GOP narrative seems to have convinced most that anything baqd that happens is due to Democratic policies.
Democrats need to start reminding people of what has really been hbappening and what could come from the policies the GOP is imposing.