Is there anybody out there?

I mean, really, is there anybody out there?

For 8 years, we’ve had allegedly dumb president, presiding over government feeding us misinformation. Now we have an intelligent president presiding over government which is feeding us (surprise, surprise) misinformation. While the previous Commander in Chief had an excuse of not being exactly “the sharpest tool in the toolbox” which could, at least theoretically, be used to justify the costly mistakes, this president is sharp, articulate, and charming, ergo no excuse for bool shift:

Everybody was making record profits – except the wealth created was real only on paper.

I guess that is meant to be presented as something completely opposite to the solution of our days – quantitative easing, a.k.a. printing money out of thin air, which creates “real wealth”. Is there anybody out there?

When people couldn’t get home loans, the crisis in the housing market only deepened. Because the infected securities were being traded worldwide and other nations also had weak regulations, this recession soon became global.

Mr. President, if We the People may ask: as former community leader, activist and lawyer, you are no doubt familiar with  Community Reinvestment Act? Yes, CRA, in conjunction with Fannie and Freddie did it under the false guise of “care for the poor”. Weak regulations? Hmm, let’s see … says NY Times in 1999 :

In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.

Fannie Mae, the nation’s biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.

The change in policy also comes at the same time that HUD is investigating allegations of racial discrimination in the automated underwriting systems used by Fannie Mae and Freddie Mac to determine the credit-worthiness of credit applicants.

Sounds like a lot of regulation to me. If anyone has doubt, do a reality check on how regulated the U.S. economy is. Of course, it would be futile to expect someone who has caused the problem in the first place to look into facts honestly and blame itself for current difficulties. Hence, it had to be someone else. So a plethora of usual suspects is pulled out of hat and served to the anxious populus: free market, animal instincts, greedy investors, racists, capitalist pigs, corrupt corporations etc.

So, says Mr. President further:

But whether we like it or not, history has repeatedly shown that when nations do not take early and aggressive action to get credit flowing again, they have crises that last years and years instead of months and months.

That would be like in the 1930-ies, when Herbert Hoover supposedly did nothing, FDR expanded upon that, unnecessarily prolonged the depression by estimated 7 years and the real recovery did not occur until after WWII. In a more recent history, Japan did not manage to get itself anywhere with bailouts. Rather, it ended up loosing a decade trying to do it. But United States is in a much worse shape. Japanese had saved and still are. US is in debt over its head and shows no signs of changing the deadly habit.

No, the world does not end when bad banks fail and credit shrinks. The world is better off because economic entities are circumstantially forced to save which creates room for healthy growth. Yes, there is economic pain, as it should be when you overdo things. But the pain is there for a reason – it’s telling us something is wrong and we should change our ways. But instead of sound economics, we are offered more of the same as a remedy.

I want every American to know that each action we take and each policy we pursue is driven by a larger vision of America’s future – a future where sustained economic growth creates good jobs and rising incomes; a future where prosperity is fueled not by excessive debt.

Gee, thanks, Mr. President. Coming from someone who managed to spend more money we don’t have than anyone else in history in just a couple of months, it already makes me feel better when I am assured there will be no excessive debt. I guess, what is a couple of trillion to a debt that already exceeds the world’s GDP. Is there anybody out there? Knock, knock … anybody home?

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