Tuesday, September 23, 2008

About That Financial Crisis . . .



I know that all the cooler heads will prevail and that the grown-ups are in charge and that the people who actually understand the intricacies of our financial markets will surely figure out the best course of action for our nation and our economy. If my time in Washington has taught me anything, it's that when great minds such as Barney Frank and George Bush come together, only good things can happen.

But while we're waiting for the big fix, you'll excuse just a moment of small-minded exasperation at the idea that a non-trivial amount of taxpayer money is about to be used not to build highways or kill jihadists, but to clean up the mess made by people who've been (transparently) peddling snake oil for the last five or ten years.

Is no one ever held accountable for their actions?



Update: Here's Kevin Hassett, co-author of the above book, explaining how incredibly simple the entire situation is. I'm certain you're as reassured as I am.

3 comments:

Anonymous said...

we get it, JVL...you are very, very smart...you saw this coming a long time ago...now please let your vendetta against housing go...

ALL CAPS ALL STAR said...

I agree with Anonymous. No matter what, the market is definitionally right. If you don't like the market, it is because you hate America!

WHY WON'T YOU CELEBRATE THE OWNERSHIP SOCIETY, LAST? DON'T YOU KNOW THAT GEORGE W. BUSH GOT THE HOME OWNERSHIP RATE UP OVER 69%? IT WAS ONE OF THE MANY GREAT TRIUMPHS OF THIS ADMINISTRATION!!!

jk said...

Fair enough and funny. If your innards don't squirm a little bit looking at the jacket thumbnails, you're not paying attention.

But it occurs to me that Gloom-and-Doom books outsell Bullish books by a healthy margin. Dow 36,000 is Glassman's personal albatross (Do you get wafers with that, Mister Coleridge?) It's been the butt of many a joke. And, when your bold prediction fails spectacularly, you deserve it. Back to the "But" part, I never see the Bears on CNBC when the DJIA crests new highs. "Mister Schilling, in your best-seller, 'We're All Totally F$%^ed Now.' you promised bank failures in 2006 -- what do you have to say for yourself, four eyes?"

We have a bias toward pessimism and cynicism -- which are a lot easier to predict. Long term, I have to throw my lot in with Kudlow. Free market capitalism will prevail even against the shackles we encumber it with. Human spirit and creativity will prevail. I'd be a buyer right now.

If I had any money.

Or if I could get a loan.