9 comments

  1. John McCain would rather lose an election than lose an economy.

    There used to be an unwritten rule in politics, that you didn’t try to induce market panic to aid your campaign.

    The American economic system is being tested like no other time since the late 1920’s. There is absolute panic on wall street today. That panic doesn’t need to spread to main street. By stating that the fundamentals of our economy are strong, McCain is reinforcing his faith in the overall system, the ability of the feds to continue to walk this tightrope, and the fact that we can endure the short term pain that many will be feeling.

    Obama continues to run counter to his claim of hope, of reaching across the aisle to solve problems, and of bringing a new tone to Washington. And you guys STILL don’t get why his poll numbers are falling like a rock.

  2. Three Jack says:

    mccain says on one hand the fundamentals are solid, but then in the very next sentence says we are in an economic crisis.

    i agree on the fundamentals, but that will not last if mccain and others continue the crisis rhetoric. and his call for a 9/11 like commission to study the situation with more regulation sure to follow is not the answer.

    this is where mccain plays to the left against all common sense. the last thing america needs is more regulation.

  3. Three J,

    Normally, I would agree about the regulation. The difference here is that public money has been backing trillions in assets with little visibility and almost no regulation.

    If mortgages are going to be totally free market going forward (not likely), then no regulation is fine. If the public is expected to stand behind mortgage loans as a lender of last resort (more likely), then appropriate oversight of underwriting criteria and compliance, along with better regs to better understand the true risk analysis, are warranted.

  4. Decaturguy says:

    Icarus the Chickensh-t,

    McCain just got through running an ad that said “our economy in crisis” with a newspaper headline that says ” Crisis Deepes as Big Bank Fails.”

    You might want to watch it.

    http://www.youtube.com/watch?v=pd-pMhboEX4

    So which is it? It our economy “in crisis” or are the “fundamentals strong?”

    I’m confused.

  5. There are major implications to saying the fundamentals of our economic system are unsound. Our leaders don’t use those words that reverberate around the globe.

    It’s like at the State of the Union address, where regardless of whatever is going on, the President is expected to say the words “The State of Our Union Is Strong”.

    Are we having a banking crisis? Absolutely. Are the fundamentals of our economy still strong, (and thus, give us the ability to ride out this crisis), yes.

  6. CHelf says:

    One would wonder if spending is down why would you raise taxes on those “evil rich” who still have money to spend? I guess Obama would rather the government have that money than the private sector of the economy. Wouldn’t it make more sense to have as much spending power in the hands of as many people as possible?

    I’m guessing with the bloated government and wasteful spending we see Obama missed how the fundamentals of government are strong as well. But for some reason, only the private sector gets the negative coverage.

  7. Decaturguy says:

    We’ve actually tried reducing taxes for 95% of taxpayers and raising taxes on the top 5% once before. It was in 1993 in the midst of another recession and it led to 7 prosperous years under the Clinton Administration.

  8. CHelf says:

    And the tanking at the end of that period. Someone forgot about the downturn right there at the end that was the Dot Com bubble burst. Make sure you include the full story in that comparison. Also make sure you include who controlled the purse strings during that period.

    Taxing money and bringing it into the coffers of government are not exactly sound ways to get money back into the system. Who does more to influence the economy? A consumer with cash in pocket or bloated government?

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