A Visit from St. Nicholas (and His Financial Elves)

American Enterprise Institute ^ | NA | NA

[neverdem]

With apologies to Clement Clarke Moore

'Twas the night before Christmas, when all through the House (and the Senate)
Not a creature was stirring, not even a mouse;
The stockings were hung by the chimney with care
In hopes that a stimulus soon would be there.

The voters were nestled all snug in their beds
While visions of "hope" and "change" danced in their heads.
The winners completed their victory lap,
And we all settled down for our long winter's nap.

For this year the markets had caused such a clatter--
Mortgages--credit crunch--what was the matter?
With th'economy hitting new low after low,
Just what would happen no pundit could know.

Up on the roof came the sound of a clank,
And out of a sleigh hopped St. Ben and St. Hank.
It was first to Bear Stearns that they opened their sack,
Before bailing out Fannie Mae, Freddie Mac.

Lehman was naughty; no presents they got.
But credit default swaps made AIG hot.
Now WaMu, now Goldman, now Morgan and Merrill
Now Citi, Wachovia--all were in peril!

St. Hank's dispensations did little for stocks,
No more St. Ben's zero-fed-funds-rate shock.
And now see the waitlist for Santa's largesse:
Moral hazard was making for quite a big mess.

Next came the carmakers, extending their hand,
But the Senate, to wondering eyes, made a stand,
Leaving the White House to fashion a bail
The details of which just arrived in the mail.

More rapid than eagles the rescues had come,
But the Treasury remained unaware of the sum.
Economists pored over musty old books;
Both Friedman and Keynes got hard second looks.

Unemployment was rising in most of the nation,
And prices were falling--a hint of deflation.
Congress was betting on more regulation
And planning an eight-hundred-bil stimulation.

As for the future, what's next to expect?
Will the markets recover or are they quite wrecked?
Will interbank lending return to the norm?
Will we finally see overdue Fannie reform?

Mr. Obama has much on his plate,
So we wish him the warmest in steering the state.
In spite of the turmoil, we'll get through our troubles,
A-ready for future commodity bubbles.

The American spirit is strong and contagious.
Our freedom is precious; our people, courageous.
With help from each other the slump we'll withstand
And give thanks to the soldiers defending our land.

So during this season, let's dwell on the light.
Happy Christmas to all, and to all a good night.

[wastedyears]

Bookmark to show my dad in the morning.

[hoosiermama]

Another Christmas “JOY”?
Will pass around the table.