Dueling Economic Processes
Posted by: Tiffany
McSame made an announcement yesterday outlining how he, as president, would solve the financial crisis in which we find our economy. He’d create the MFI (Mortgage and Financial Institutions Trust). The job of the MFI would be to identify organizations at risk. The only way this would work is if the businesses have more transparency. Enter Step 2. Step 2 is to pass a law requiring transparency.
Call me crazy, but that sounds like… regulation? I’m sure I read that wrong. Mr. Maverick has been quoted numerous times stating that he is in favor of deregulation in almost all cases. He actively supported the 1999 Gramm-Leach-Bliley act that got us into this mess in the first place.
Ok, I’ll keep reading. Surely he’ll clear this up. Step 3 is regulatory clarity. Heck, now he’s actually calling it regulating. Hmm. Well, I’m sure he’ll bring it back to the importance of deregulation. I’m sure of it. Blah blah blah… Step 4. “Our regulatory system must protect consumers and investors…”
It just gets funnier. Step 5 says that the treasury must follow guidelines to guarantee loans, but step 6 states that the fed needs to get out of the business of bailouts. Isn’t that what the loan guarantees are? Bailouts?
McSame’s plan here not only contradicts past statements he has made (and by past I mean in some cases just a few days ago), it even contradicts itself. I can’t help but wonder if the man has any economic advisors at all. For a man who himself admitted he needs to be educated about the economy, he needs all the advisors he can get.
By way of contrast, Barack Obama has said that he is waiting to announce his economic plan until after he meets with economic advisors. The meeting consists of Barack Obama, Joe Biden, and 9 of the top economic and financial advisors in the country, including none other than Warren Buffet.
On a side note, McSame also said:
“Many in the financial services industry also either forgot or neglected their duty to act ethically and honorably.”
My friends, that’s what happens in an unregulated market.
2 Comments
Comments RSS TrackBack Identifier URI
Leave a comment
I think McCain does have an economic advisor. Remember the guy who said the poor economy is all in our perception – whiners that we are – or something like that?
Today, McCain cried about how Chris Cox, Chairman of the SEC, should be fired. Obama, OTOH, met with Cox and Secretary Paulson to discuss a plan to fix the economy. It was Cox’s swift action to stop short selling and the negative pressure on the market that would have ensued. The idea of firing the person who saved millions of people’s portfolios is absurd and McCain should be ashamed he proposed it. Then again, he has no shame.