Bush Plans Response to Subprime Crisis

[bsrsharma]

LA: I completely agree with Barons analysis. Bush played a masterful stroke by giving very little but appeared compassionate. So many people are counting it as “bail out”. That shows his genius (can you believe it?).

This problem of credit crunch will only get corrected over a long period of Stagflation. Repeat 1974-1982 all over. Any attempt by BB to seriously meddle with FFR means Argentina-Brazil-Russia style crisis. Start thinking of $10 gas if you think $4 is painful. (Oh, BTW, then Ford & GM will be bankrupt, Chrysler liquidated – a million ex-autoworkers. Rustbelt will resemble Mexico). Any politician who thinks we have problems should live in a third world country for a few months to know what Capital Flight means.

[LA_Renter]

More commentary from the LA Times:

Tom Petruno:
Market Beat
Big bailout might be inevitable
9:40 PM PDT, August 31, 2007

One view of the Bush administration’s mortgage-crisis action plan, outlined by the president Friday, is that it’s a Republican attempt to avoid a larger-scale federal intervention.

But history suggests that a larger-scale government intervention is exactly what we’re going to get.

http://www.latimes.com/business/la-fi-petruno1sep01,0,4210469.column?coll=la-home-center

Full disclosure…I am a dare say a social progressive…and strong fiscal conservative which makes me what they call Liberatarian, I just consider myself an Independent. With that said I am in the 66% to 71% of Americans that disapprove (strongly I might add) of Bush. I will say this…I am glad we have a conservative (not so much Bush just the long ago forgotten and rarely implemented idea of fiscal conservative ideology) as president at this moment on this issue. Sure he is going to f*#k this up, but if we had the opposite end of the spectrum in power on this issue at this moment your tax dollars would already be hard at work attempting to bail this situation out. Keep a little perspective here.

[bsrsharma]

larger-scale government intervention

LA: If it is any consolation, US debt limit is now $9 Trillion. And the government is already close to touching it. There is little chance of increasing that limit in a political year without creating a Ross Perot (or Ralph Nader) type populist firestorm. Ron Paul is already sounding like a insurgent. Every available red cent will be used to finance Bush's pet project – Iraq. The only large-scale intervention I can imagine is lot of Katrina style FEMA trailers (built by Halliburton?) for the newly homeless

[LA_Renter]

bsrsharma

I hear ya but they can still screw this up. I was looking at the LA Times article in the context of what was said in the Barons article

“Now that the president, however tentatively, is officially on board, the bailout bandwagon is sure to pick up speed, volume and passengers, particularly with an election year looming. That could mean, as the sharp rise in the price of gold, up over $7 an ounce on Friday, gives fair warning, a rash of fiscal fecklessness, fresh debasement of the dollar and that most unenviable of economic combinations — no growth and inflation.”

The media is getting on board with the bailout manifesto and they are going to march us into a much bigger mess. I agree with your stagflation repeat 1974-1982 all over. Sweeping this problem under the rug will not help. The only solution is to let the markets clean it up but that is going to take a while 18-36 months. Politically speaking Stagflation, while being horrible and the wrong choice, is the easy way out. Things are going to suck for a long time. With that said I’m going to the beach and enjoy the rest of my Labor Day weekend 🙂

[SD Realtor]

I agree with you LAR.. I forgot who I saw yesterday on the news but it was either Schummer or Dodd and they were commenting on how happy they were that Bush took a page from the Democratic party but that he took a very small piece of a page and that congress will be working to “make a real difference to help people out”.

SD Realtor

[drunkle]

carter’s appointment of volker eventually fixed the economy of the late seventies. and yet conservatives and republicans love to pound on carter, his economy and iran.

f ck republicans.

[Author]

Posts