Timing of Economic "Collapse" Seems to Justify Paranoia

Townhall.com ^ | September 25, 2008 | Matt Towery

[Kaslin]

In politics, timing is everything.

Don't you think that in quiet places where they can't be heard, there aren't some involved in the 2008 political race who aren't whispering aloud questions about whether the almost whirlwind speed at which the entire financial market has melted down seems more than coincidental? Would they be guilty of unjustified paranoia -- or would they be justified in at least pondering the issue?

Oh, I forgot. When conservatives or Republicans -- or even members of the Clinton family -- dare to suggest that there might be some mischief afoot, or that some unacknowledged media, political or business leaders might have it out for them, they're just being paranoid whiners. But when liberals or some Democrats suggest that there exists an automatic anti-black vote in America, or that electronic voting machines are designed to take races away from their candidates, that's just healthy discussion -- or plain facts. Right?

In covering and polling this presidential race since its first flickers, I've noticed a lot of really weird and inexplicable things taking place. I watched the Democratic Party's national establishment do everything within its power to knock Hillary Clinton out of her party's nomination. I witnessed John McCain resurrect himself from the political dead and, using the most unlikely of candidates, former Arkansas Gov. Mike Huckabee as a political blocker, manage to hijack conservative votes from candidates such as former Massachusetts Gov. Mitt Romney. This split them into enough camps to allow McCain's more moderate supporters to vault him to the nomination.

You don't think Romney and the conservatives didn't wonder how all of this happened? You don't think Hillary and Bill don't still believe that the Northeast Democratic establishment had it in for them from the start? Whether or not events are the result of coincidence or some grand plan, it's only human nature to ask the question, "Who really did this to me?"

That brings us to the most amazing and perplexing happening in the entire 2008 presidential race.

As early as March 2006, I was writing that the roaring housing market was likely to collapse and bring down financial institutions with it. Now if I could see that coming, you'd think those far more gifted than I in Washington, D.C. or on Wall Street would have seen it, too.

Like most everyone and his uncle, I've been writing a book on this crazy election. Mine is called "Paranoid Nation: The Real Story of The 2008 Fight For The Presidency." The book went on sale on Amazon, of all things, during this week of historic economic news, and even as I'm preparing the final chapters about the last days of the campaign. Now more than ever am I glad I chose this title!

John McCain and the Republicans have to be wondering why the safe haven for investment bank customers known as "auction rate securities," which had auctioned off and were treated as safe as money markets for ages, suddenly started to fail to find any takers earlier this year.

Surely they question why it is that the giant disasters known as Fannie and Freddie reached their moment of darkness with just seven weeks to go in the election. One would think that conservatives and Republicans are scratching their heads wondering who was shorting the stocks of critical investment houses and causing widespread panic over the liquidity of everything from pension plans to simple money market accounts, and all in a matter of a week.

Now we are down to a $700 billion bailout that is, for McCain and the Republicans, like the Salem witch trials. If you are innocent, you drown, if you are guilty, they burn you at the stake.

Newt Gingrich says that if McCain votes for the so-called "Bush bailout" bill to keep financial institutions solvent, he will guarantee his defeat. Based on how many conservatives feel about the bill, that may well be true. So there's the "drowning if you're innocent" part of McCain's ordeal.

If the Bush proposal fails to pass, then panic is likely to hit Wall Street, leaving banks and financial institutions with little working capital; and likely leading to one of the worst economic crises most of us have ever witnessed. That is where McCain gets burned at the stake.

As is often the case, this entire disaster is likely a combination of strange coincidences, greed and total ineptitude on the part of leaders in government and finance. But we do know that the FBI now wants some answers about these matters as well.

Oh, and I couldn't help but notice that the most astute of Obama supporters, the "Sage of Omaha," Warren Buffett, was ready and willing to scoop up at a fire-sale discount a good portion of Goldman Sachs. Is he really just a sage?

Sorry. There goes that darn paranoia again.

[CharlotteVRWC]

“Don’t you think that in quiet places where they can’t be heard, there aren’t some involved in the 2008 political race who aren’t whispering aloud questions about whether the almost whirlwind speed at which the entire financial market has melted down seems more than coincidental?”

What’s the saying? “I don’t believe anything is coincidental?”

[bluecollarman]

Any bail out deal should contain the resignation of Barney Frank, Chris Dodd and Chucky. The Republicans should call for it even if they can’t achieve it.

[stefanbatory]

Is it paranoia if they really are out to destroy the market economy with some grandiose socialist scam?

When I was in high school, I lived in a country that was recovering from socialism...it sucked! I don’t want my country to suck too...

[Guenevere]

bttt

[Travis McGee]

"There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved."

---Ludwig Von Mises

Paulson and Bernanke are choosing option #2.

[not2worry]

The timing of this whole fiasco and the election less than 50 days away just seems too much of a coincidence to believe.

The last three elections seem to have culminated in the “It's the economy stupid” motto”.

Personally, I don't know of one friend, business associate, family member or even a passerby who is dire financial straights, who has lost their job, their home, their car or their savings.

I do know that all this “sky is falling” coming from the Beltway, however, is putting fear into all Americans about what doom and gloom will strike our front door when the sun comes up in the morning.

I don't know whether this if Fear Mongering or Reality.

Scratching my head in the Midwest! And FWIW, Warren Buffet seems more like a vulture than a savior, IMHO.

[DustyMoment]

There are some very deep pockets propping up the Obamessiah. When one steps back and looks at the character of the race and the candidates, there is no valid reason for the Obamessiah to be where he is.

So, we follow the money. Is it a coincidence that the Obamessiah received large campaign donations from the CEOs of Fannie Mae and Freddie Mac . . . . . . BEFORE they “collapsed”?

The Obamessiah has now been “asked” by W to come to Washington and work with him to “fix” the mortgage/credit/Wall St. meltdown. W is contributing to the Obamessiah’s sycophants’ perception that he is presidential material by making such a request.

Again, coincidence? I think not. When we are able to fully track the money behind Obama, we’ll find out who pulled the strings and ordered the Wall St. meltdown.

And, all roads will lead to someone with VERY deep pockets.

[capydick]

Any bail out deal should contain the resignation of Barney Frank, Chris Dodd and Chucky. The Republicans should call for it even if they can’t achieve it.

Agree 1000%. But - the Repub's wont do this in the interest of non-partisanship. The RAT's win out again and live to remain dangerous to the country.

I would also hope that ANY deal include a ban on receiving political donations from any entity that benefits from this rescue.

[Buchal]

Exactly.

[silverleaf]

The Congress already destroyed or at least mortally wounded the “market” economy.

Now the question is, do you want to give the patient emergency resuscitation and then look for a cure or at least a treatment-

or remove life support and just let the patient rapidly exsanguate.... thinking it's just someone elses relative anyway?

[mdmathis6]

How about instead of “strange coincidences”, that perhaps God has most earnestly started trying to reach us, to urge us towards repentance. God is here and he is not silent!

[bluecollarman]

“the Repub’s wont do this in the interest of non-partisanship.”

You are right of course, but someone should bring the idea up. It would get a lot of press.

[sageb1]

"Surely they question why it is that the giant disasters known as Fannie and Freddie reached their moment of darkness with just seven weeks to go in the election. One would think that conservatives and Republicans are scratching their heads wondering who was shorting the stocks of critical investment houses and causing widespread panic over the liquidity of everything from pension plans to simple money market accounts, and all in a matter of a week."

--

"There are some very deep pockets propping up the Obamessiah. When one steps back and looks at the character of the race and the candidates, there is no valid reason for the Obamessiah to be where he is.

So, we follow the money.

Again, coincidence? I think not. When we are able to fully track the money behind Obama, we’ll find out who pulled the strings and ordered the Wall St. meltdown.

And, all roads will lead to someone with VERY deep pockets."

Yes. I think we all pretty much know who is responsible. Proving it is another matter entirely.

[ripley]

“any bail-out deal should contain the resignation of barney frank, chris dodd and chucky. the republicans should call for it even if they can’t achieve it.”

fat chance. the republicans choose to kiss the asses of liberal democrats and “reach out” rather than fight them.
they’re all suffering from some sort of stockholm syndrome when it comes to liberal/communist scumbag democrat phalluses infesting the halls of congress; ill-mannered, badly toilet trained scu7bags who either represent a scu7bag electorate or fixed voting machines.

IMHO

[silverleaf]

Personally, I don't know of one friend, business associate, family member or even a passerby who is dire financial straights, who has lost their job, their home, their car or their savings.

That is part of the problem here. Paulsen and Bush did not make it clear last night how quickly things will change for the ordinary guy, without a dramatic and fast intervention. Unless you live a self sustaining cocoon like an Amish farmer, you are not immune from the dramatic blowback of an economic collapse. I guess they did not want to "panic" people.

I heard this morning that Paulsen has said "People are angry and scared. Right now they are more angry than scared. Maybe they need to get more scared"

Bush in keeping it short sweet and as optimistic as possible last night, did not tell people the cost to THEM of a dramatic rapid recession in terms of INFLATION, unemployemnt, and overall economic shrinkage. Those figures would make $700 Billion look like a bargain.

All these brave people arguing against any intervention and saying "Bring it On" are not even thinking or imagining living in a society brought to its knees by the plight of others in their communities, if not to "them" Oh, and when the old folks' pension checks shrink or stop by late October and your dentist and plumber lose their 401K's value- ...HELLO President Obama with his proven track record of freezing like a deer in the headlights without a teleprompter, and choosing losers as mentors and advisors. Imagine our Cabinet and Supreme Court over the next 4 years as we work our way into a real depression - probably with a another war in the middle east (with Russian involvement) to boot.

[y6162]

“The timing of this whole fiasco and the election less than 50 days away just seems too much of a coincidence to believe”

Anybody seen George Soros lately? I think he pulled this scam on the British pound some years back.

[SE Mom]

It is pretty incredible this is happening NOW.

[stefanbatory]

I would prefer that certain members of that same Congress would rapidly exsanguate for their role in causing this.

Know this: many people will die if we do not prevent this march towards Communism. More precisely, they will simply disappear one day never to be seen again. as the old flip saying says: “Communism has only killed 100 million people, let’s give it another chance!”

[nicola_tesla]

Something to ponder - coincidence ? Probably not.

http://market-ticker.denninger.net/archives/590-FLASH-Fed-Speaking-Out-Both-Sides-Of-Mouth.html

The Fed has claimed that this is a "liquidity crisis."

Really Ben? Then perhaps you can explain this?

Note that this is an intentional drain of "slosh", or liquidity, from the banking system. $125 billion in the last four days drained?

You wouldn't be trying to intentionally cause a bank failure or two to bolster your call for the $700 billion "bailout" plan, or perhaps intentionally lock the short-term credit markets, would you Ben?

If the market has a liquidity crisis, why would you be intentionally draining reserves from the banking system? Don't you think you ought to explain that to Congress?