One of the few good things coming out of this recession is that it justified dozens of billions of dollars given as yearly bonuses (up to $200 million per person) to Wall Street’s financial gurus. Those individuals have actually been able to make the federal government (the Federal Reserve and central bank) pay the bills of those bankrupt Wall Street companies in exchange for almost worthless mortgage-based securities. The banks got $200 billion in hard cash (taxpayers' money) in return for collateral in the shape of notorious securities that nobody else in the financial world wanted.
A completely unrelated question is what law has authorized Mr. Bernanke and friends to trade taxpayers' money for the stinking, contagious papers of the private companies.
It's one thing to provide the banks with loans when they need it. A completely different problem is to voluntarily deprive the federal government and all taxpayers of the right to go after the sound assets of private banks by accepting worthless monetary notes as collateral.
But the FBI is ready to investigate any potential crime as soon as they are done with the investigation of Client Number 9, who used his own money to pay for a prostitute who is already on her way to stardom. We need to fill up a hole left after a sudden death of Ann Nicole Smith, otherwise dozens of cable channels might be forced to shut their doors.
If ex-Governor publicly demanded the taxpayers' money to pay for his own stupidity, he would be untouchable, at least according to Mr. Bernanke. Isn’t that compassionate conservatism or what!? It's a good thing Mr. Spitzer has resigned. If he was stupid enough not to say that any kind of investigation would impede his efforts to defend New York from another terrorist attack, then he is really useless. If he claimed that he was a mole that penetrated the prostitution ring, receiving confidential information that prostitution money had been funneled to overseas terrorists and that he, as a career-long fighter against organized crime, volunteered for this dangerous mission, he would be considered a true American hero, on a par with Mr. Bush and Mr. Cheney.
Hasn’t this duo used claims like this during the past seven years? Whatever they did was in America's best interest. They started the Iraq War to destroy WMDs and Al Qaeda. Does anybody care that the Pentagon’s own investigation proved both statements wrong? Now Bush and Cheney must complete what they started, otherwise thousands will have died in vain. At least Spitzer’s lie would have far more sense.
The other good thing coming out of this recession is that it will put an official end on the absolutely unsustainable and delusional Bush economy. You know, reducing taxes in order to enlarge the national debt, become completely dependable on China’s line of credit, undermine the American economy by opening the gates of the US market to foreign competitors et cetera has always been completely insane policy.
You'd have to be on drugs to believe that American workers with ten times higher wages can compete with foreigners who work for crumbs but who have the latest technology, equal to America's, thanks to our big business. which eagerly exports it to our foreign competitors.
But if the goal was to bring the American wages down to the Chinese level, then the whole macroeconomic policy makes perfect sense.
Mar 15 2008 - 4:18pm