Over at Connecticut Local Politics, much discussion has been had over current financial system events and who or what is to blame for the apparently perilous state of our financial economy, and how we should proceed from here. The left argues that we should take care of the people who have to pay the mortgages, the reasoning being that if you do this, you both keep the system solvent and keep people in their homes. I often find myself at odds with the left but, I must admit, this seems like an enormously sensible proposal under the circumstances.
The free market guys want to let the market work it out. If it crashes and burns, well, that’s life in the big city. I often find myself at odds with the free market purists who believe in this but, I must admit, this seems like an enormously just and simple approach under the circumstances.
Sure, I’m leaving some important points of view out but, in the interest of brevity, I come to the subject of this post. You’ve got those principally pointing the finger at the Republicans and all they believe; and their opposite number, those who assert that it was the Democrats and their President Clinton who started all this about ten years ago, what with their repeal of Glass-Steagall and whatnot. It’s the “yeah, Republicans totally suck, but so do the Democrats” argument, a variety of the rather adolescent rationalization for bad behavior “hey, everybody does it”. Another variant of this is “it has always been this way”.
This isn’t a problem that occurred in the last 8 years or the last 16. This is exactly the inevitable result of using manipulation of the money supply to “grow the economy”. Here’s a news flash, when the GDP grows at a rate of 2% while the money supply grows at a rate of 10% you have NEGATIVE growth and a ticking time bomb”.
The last two sentences are exactly right. Problem is, this was explicitly the policy adopted by the Bush Administration, or more precisely Alan Greenspan when the Bush Administration came in. It was decidedly not the policy of the Clinton Administration, or more precisely Alan Greenspan when the Clinton Administration was in power.
Under Clinton and his Treasury Secretary, Robert Rubin, the United States pursued a strong dollar (that’s present-time speak for “sound money”, Tim White) monetary policy (and a fiscally conservative budgetary policy); and that was what was responsible for the increasingly sound economy we experienced over the course of Clinton’s Presidency. It is also why the “dot.com” meltdown pretty much just bounced off the rest of the economy.
It was on this solid foundation that the prudent and measured steps toward deregulation of the financial industry were taken. In a nutshell this is why allegations that somehow the Clinton era moves are responsible for current events - or are even of the same order as the policies of the Bush Administration - are just hogwash.
The Bush Administration attempted to fight a war on credit and inflate our way out of it. I honestly believe that this was a conscious and intentional decision they made. Just the last catastrophic miscalculation by what is now without question the worst Presidency since the Civil War, if not the history of the Republic.
Saturday the Norwalk YMCA kicked off the events that will inspire more physical fitness with a short walk from the YMCA through Lockwood Mathews Park to Devon’s Place. With a crowd of 30, a round of short speeches and some rain, the event highlighted that Norwalk s home to a special needs playground in Devon’s Place. On hand to support the YMCA’s efforts:
Fred “Dean of Fitness” Bondi and YMCA Board Member Mike Coffey holding daughter
Mayor “Block & Tackle” Moccia and Norwalk YMCA CEO Cynthia Armijo
Despite the rain, around 400 residents made it to the DPW service center on South Smith street to experience the sights and sounds of Public Works. In addition to the waster water treatment tour, many exhibits were on hand to explain the traffic signal upgrades, road paving plans, tree management and snow plowing plans.
But the main attraction, for kids, was climbing into the cabs of the assorted specialized trucks that make up the fleet, and tooting horns. Needless to say it was rather loud. A few pix:
UPDATE: A reader contributed this nice youtube clip of the day:
A reader contributed this youtube clip, which is kinda interesting. Except that it is also superficial. To suggest that legislation that encouraged lending to disadvantaged borrowers is the main contributing factor to the current economic crisisi is akin to saying that dollar menu at McDonald’s is the main contributing factor towards obesity.
The current economic crisis can be traced to deregulation. As long as banks were required to keep high liquid monetary assets in reserves to loans and other liabilities, they were forced to manage their mortgage portfolios. The minute the regulations were lifted and all sorts of exotic secondary markets opened for them to put those liabilities “off the books” and not keep cash reserves to offset the risks, the downward spiral of paper profits induced the high risk, high return investment strategy that led to this mess.
Sarah Palin “Is Clearly Out Of Her League“, according to National Review columnist Kathleen Parker, writing on September 26:
As we’ve seen and heard more from John McCain’s running mate, it is increasingly clear that Palin is a problem. Quick study or not, she doesn’t know enough about economics and foreign policy to make Americans comfortable with a President Palin should conditions warrant her promotion.
Here is one of the three excruciating interviews Parker references:
UPDATE: Here is this week’s SNL installment on Sarah Palin. The first was riotously funny. The actual interview was so bad that there was almost no room for satire. It was almost mimicking the real interview. Both funny and kind of illuminating:
The Palin factor has gone from novelty joke to serious concern for a lot of us. McCain’s physical appearance and undeniably volatile temperament are real concerns. And with the Palin factor, his age and health are not considerations we must politely avoid discussing anymore. This has gone from a matter of partisanship to one of genuine concern for our well being.
Sitting at the counter at the Post Road Diner a few weeks ago, I overheard a couple of women of McCain’s generation, one of whom described herself as a “conservative, southern woman”, expressing the unalloyed opinion that McCain was too old to be President. This was not the first time I’ve heard this voiced or written by people old enough to speak with authority.
Meanwhile, polling is showing a clear trend away from Governor Palin and Senator McCain. The results are still pre-debate. The next few days we’ll start seeing how the table lays post-debate. Some observations surfing what’s out there:
Virginia flips to Democratic on Politico’s map.
Five-thirty-eight shows Virginia more solidly blue and both Ohio and Florida have turned toward Obama since yesterday; Indiana is a toss-up, Missouri and North Carolina have weakened from solid McCain to leans McCain.
Pollster shows Indiana as a toss-up now, with Missouri and West Virginia still in McCain’s column, but weakening.
Westportnow.com has the coverage. Westport Playhouse statement here. Newman’s Own statement here.
UPDATE Paul Newman died at his Westport home Friday night. He was 83. Paul Newman: A Westporter for 50 years. WN file photo
Newman had been ill for some time with what published reports said was lung cancer. Publicist Jeff Sanderson said he was surrounded by his family and close friends.
An actor, film director, entrepreneur, race car driver, racing team owner and humanitarian, Newman won numerous awards, including an Academy Award, two Golden Globe Awards, a Screen Actors Guild Award, a Cannes Film Festival Award, and an Emmy award.
From McCain’s point of view, polls have been steadily deteriorating over the last two weeks. Simulations being run of possible outcomes show a steady and significant increase in the likelihood of a decisive Obama win. Consistent with this, my daily survey of polling and swing-state tilt may have reached a tipping point.
Today, two key states that had been leaning McCain are now leaning Obama - Nevada and Virginia. Missouri, Indiana, North Carolina, and Florida have moved from solidly McCain to leaning McCain.
New Hampshire and Ohio - until today leaning McCain - are now looking like tossups. Going back to the 269 to 269 post, it was clear that, barring an unpredictable flip in Michigan, Wisconsin, or Pennsylvania, there was no way to make the math work for McCain if he loses Ohio. Not possible.
Other than taxes, McCain hopes that foreign policy is his trump card, and the subject of tonight’s debate is foreign policy. Tonight may be McCain’s moment, the turning point after many false starts: the thwarted Lieberman gambit; the Palin gambit; the “I’d fire the Chairman of the SEC gambit”; the “I’m suspending my campaign gambit”; the “I’m going to Washington to get this legislation done” gambit; the “I’m postponing the Friday September 26th Debate” gambit.
If Obama can win the debate in the eyes of the people of Ohio or Florida, that is, if the trend continues to move toward Obama in one or both of these two states, it may be impossible for McCain to prevent a landslide loss.
If that happens, we’ll start talking about just how long Obama’s coat tails in the Congressional and Senate races are going to be, and whether the Republican Party is facing a real prospect of being in effect a regional rather than a national political party.
Youtube delivers two clips of the fabulous Tom Tom Club playing at the Sounds of SoNo. Thanks to The Southport Globe for posting! The Southport Globe is a great blog on all things Southport, check it out.
JPMorgan Chase acquired the banking operations of Washington Mutual Bank in a transaction facilitated by the Federal Deposit Insurance Corporation. All depositors are fully protected and there will be no cost to the Deposit Insurance Fund.
“For all depositors and other customers of Washington Mutual Bank, this is simply a combination of two banks,” said FDIC Chairman Sheila C. Bair. “For bank customers, it will be a seamless transition. There will be no interruption in services and bank customers should expect business as usual come Friday morning.”
Gay Online Tv… it`s a 24h broadcasting... 
