While Americans are better educated on the economy and complicated financial concepts today than they were, say, on September 15, 2008 (the date of John McCain's "the fundamentals of our economy are strong, my friends"), and they are certainly more attuned to the hard times that have developed and are continuing to develop, it is apparent to me that they (and many of us here) simply do not understand the brink to which our economy and the world economy has come to.
And, from a human nature point of view, our ignorance makes sense. Unless you are about 80 years old or older, you DO NOT UNDERSTAND a national financial collapse.
I keep hearing about the "Kennedy tax cuts" in 1961; about the "Reagan tax cuts" in 1981; about the "Clinton recovery program in 1993. NONE OF THOSE EVENTS ARE ANYTHING LIKE WHAT WE FACE TODAY.
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Those events were miniscule compared with this one. And both the stimulus legislation passed today in the Senate and the TARP II program outlined today are not nearly the end of our desperate attempt to right this economy.
Our lack of understanding of the extent of the threat allows (invites) partisans on all sides of the political spectrum to spew out the most laughable arguments. And I mean progressives as well as the despised crazy right. For every Limabaugh-like loony who thinks we should just go golfing and let the "free" market (whatever the hell that is) "sort things out", there is a disappointed liberal who thinks that Obama should stick it to the Republicans even if it means that NO national governmental action can occur for a while. For every right-winger who loves, just loves, tax cuts for the rich (and hates EVERYTHING else), there is a left-leaning Democrat who wouldn't support giving money to a bank (those dirty capitalists) even if it meant that the bank would collapse and bring down millions of Americans with it.
If Paul Kanjorski is correct, on that terrible day in the fall, after $550 billion was withdrawn from banks in 2 hours, it was possible that the next few hours could have seen $5.5 TRILLION withdrawn. Kanjorski, a relatively moderate Democrat, not given to a lot of hyperbole, says that the American national economy and with it the political structure was within sight of collapse, and then the world economy would have swiftly followed (NOT in two or three MONTHS but in 2 or three DAYS).
Now the President can warn us of the cost of inaction, but he has to walk a fine line. He CANNOT say how bad this all this because that will spook evrybody more than they are already spooked. And the psychology of the public, the investors, the companies, the lenders (in some cases, countries like China) requires some measure of calm, some measure of optimism. Once that is lost, all the tax cutting that any mixed up Republican can do won't work; and any printing of trillions of dollars by the Treasury that free-spending Democrats would like won't work.
The unemployment rate in Elkhart, where the President was yesterday (15.3%), and the foreclosure rate in Fort Myers where he was today (the highest in the nation) are PIDDLING compared to the rolling collapse we are witnessing in the economy. Elkhart and Fort Myers may be looked back upon as the "good times" if we fail at this.
So banks (no matter what your intestinal opposition for those rich bastards) MUST be propped up. And the national government MUST do ANYTHING it can think is rational to prop up the consumer economy (no matter how much you detest any spending by the goverment). Yes, we need finanacial institutions to loan out money, not just hoard our cash infusions. Sure, we need long-term projects; that is only smart. But I say - so what if 20% of what we do is waste; we vitally need the other 80% RIGHT NOW.
When the house is about to fall down, and there are ten things you can do to stop that, and only 6 of them may help but you don't which 6, do ALL ten things.
I don't want to hear that it may take two weeks for the Senate and House to reconcile their stimulus bills. Tie those guys to the table and get it done this week.
And, folks, in this democracy of ours, at least for a little while until we truly go into the tank, the smallest of politicians will think they are the equal of Alexander Hamilton and Abraham Lincoln rolled up in one. Let them blab on; among all that blabbing, sometimes by mistake, there is a gem of wisdom. It might come from your friend; it might come from your adversary. Beggars can't be choosers. Let them blab on; but ACT.
And, by the way, I sense that just three weeks into his Presidency, Obama has come to conclusion that he will not and cannot make decisions simply to reassure his re-election, or to even to protect Democrats in 2010. Because he knows that if he doesn't rally the public AND do the tough right things, the Presidency won't be worth much in 2012, and all those would-be Alexander Hamiltons and Abraham Lincolns will just be forgotten in the mudslide of this world economy.
And, no, I don't feel better now.