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The markets know, and tell us, which party can handle financial crisis

By: Vegas_Rick (Diary)  |  September 18th, 2008 at 03:20 PM  | 

RESIZE: AAA

This morning, Jim Geraghty at NRO let us know that Senator John McCain is proposing a new version of the Resolution Trust Corp. that helped get us through the savings and loan crisis a few years ago. You can read Jim’s blog here.

Yahoo!announced this afternoon the Treasury Secretary Hank Paulson wants to do exactly what John McCain suggested this morning.

The result of that announcement? The Dow Jones rocketed up 450 points. Since President Bush lifted the Executive Order banning offshore drilling for oil, the price of crude has dropped more than 35%.

Just listen to the markets and you can figure out who’s got it figured out! :)

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  • aaronbg

    n/t

  • ekevlar11

    The Resolution Trust Company may have shored up the market at the time leading us to using that vehicle again.

    This once again simply privatizes profits and socializes losses.

    Hey guys, go out and offer these poor loans to anyone and everyone. Make a few bucks and when the going gets tough and you realize that you offered loans to people who should not have had them…we’ll take care of it.

    This is wrong.

  • Vegas_Rick

    It’s not wrong to take these steps to ward off financial calamity. But, IT IS wrong that the conditions that allowed us to get here were created. These are the unintended consequences of the liberals trying to expand home ownership to those who couldn?t afford to buy homes, under Bill Clinton. If you don?t want the fox to eat the chickens, don?t give him the key to the henhouse.

    The congress created an environment where Option ARM?s and NINJA loans were freaking LEGAL.

    I agree with you that a lot of people should get hurt real bad over this. But, I believe to make that happen, a great many more innocent people will be wiped out.

    So let?s do what we have to do to put confidence back in our financial markets, and then revise our regulatory apparatus to ensure a similar crisis doesn?t happen in the future.

    Those are my thoughts (or fantasies). I?m certainly not an economist.