The American Mind

Quivering financial markets are in the news therefore Presidential candidates are sure to follow with statements.

Sen. Barack Obama went off half-cocked blaming President Bush for everything:

History will not judge President Bush kindly for his failure to act in a way that could’ve prevented or alleviated this economic crisis. There have been few Administrations so out of touch with the concerns and the struggles of working Americans and so beholden to the lobbyists and special interests who blocked any kind of regulatory oversight of the financial sector. Whether it was subprime lending, credit cards, or bankruptcy laws, Washington has allowed these special interests to prevent sensible policy that could have prevented the most serious effects of the current predicament.

Obama’s new politics are like standard Democratic tripe: It’s Bush’s fault. Specifically about blocking regulation Obama forgets Bush signed Sarbanes-Oxley. He also fails to understand this economic situation is mostly about the Federal Reserve lowering interest rates too much which created too much money that had to go some place. In the late 1990’s it went into unsustainable technology companies. This time around cheap money poured into real estate. No criticism of the Fed comes from Obama’s lips.

Obama calls for legislation that forces lenders to restructure mortgage terms with borrowers. He claims that would “not [be] a bailout for lenders or investors who gambled recklessly,” but that would ultimately be up to the discretion of a heavy-handed government bureaucrat.

Sen. Hillary Clinton takes the vapid route by not saying much of anything. She “will continue to monitor the situation closely throughout the day and will seek advice and counsel from a broad range of economic advisors” while hoping things go well for New York City financial workers. Lack of substance is better than hearing her recycle stuff like foreclosure moratorium, freezing mortgage rates, and spending $5 billion to help “communities and distressed homeowners weather the foreclosure crisis.”

Want to know what’s worse than saying nothing? Actually saying nothing. So far Sen. John McCain has been silent on latest economic developments. That silence only reinforces the idea McCain is clueless about the economy. It’s likely the economy will be a huge issue in the Presidential election. McCain must counter any perception that he won’t be able to deal with an issue voters care dearly about.