Economists - Capable of so much destruction!

The U.S. has been humbled and the piling on and gloating will soon begin. The blame game already has. We are paying for years of under saving, over spending and hubris. It happens to nations as well as families because all must depend upon credit supported by a credit worthy name.

What is so typically ironic is that Sen. Dodd, who benefited from the lobby largesse from Freddie and Fannie and whose committee had oversight, is now being billed as the great "saviour." More hypocrisy! Dodd is an officious blowhard.

Reports from the McCain campaign that they are working on a Palin makeover after her "disastrous"" performance with Couric. I warned and wrote about the fact that before long the pros would destroy Palin. She was not selected because of her knowledge of foreign affairs and understanding the intricacies of finance. She was selected because of her views which were shared by her party's base, because she brought a freshness to politics and had a decent record of governance. The pros, realizing her shortcomings, then began to mold her and moldy she has gotten. Most politicians fear being themselves. Sad.

It is the D.C. pros who, theoretically, understand foreign affairs, and high finance who have brought us to the precipice not the novices. Novices can do damage for sure. This reminds me of the story about the May Day parade when Gorbachev turned to an adviser and asked who were all the many men wearing black coats marching in the parade along with tanks,missiles etc.? The aid responded they are the economists. Gorbachev asked why economists were in a May Day parade? The aid responded: 'because they too are capable of so much destruction.'

Some good will come out of our financial debacle because we will not be able to spend like drunken sailors but, no doubt, the politicians will still find a way to fund their pet supporters and programs and act irresponsibly all the while claiming they are devoting their lives to "we the people." Well "we the people" have every right to send them back a message but I doubt we will because it is always the other guy's elected official who is to blame. We have the best government dirty-laundered money can buy!

This all bodes well for Obama who, in reality, is a better educated male Palin. Oh well!

Dick


1)The Bankruptcy of Modern Economics - Robert Samuelson, Newsweek

Don't Call It a Bailout. Or a Depression - Irwin Kellner, MarketWatch

A Bailout is Just a Start - Larry Summers, Washington Post

Trust Capitalism. It Works - Joseph Calhoun, RealClearMarkets

Main Street Turns Against Wall Street - Nina Easton, Fortune

Forced Political Lending Laid Foundation - Ralph Reiland, Pittsburgh TR

Editorials:

* Unpleasant But Essential - The Economist

* A Main Street Rescue - Wall Street Journal