Debate Fact Check 5
About that claim by McCain that he warned about the mortgage crisis:
McCain: "But -- but let me -- let me point out, I also warned about Fannie Mae and Freddie Mac and warned about corporate greed and excess, and CEO pay, and all that. A lot of us saw this train wreck coming."
In fact, he has already admitted that he did not see the financial meltdown coming.
"But I don't really know of anybody,with the exception of a handful, who said, 'wait a minute, this thing is getting out of hand and is over-heating.' I'd like to be able to tell you I anticipated it, but I have to give you straight talk, I did not."
posted by Juan Cole @ 9/27/2008 01:33:00 AM
|
Facebook
5 Comments:
Millions of people predicted the bubble will burst. I posted a comment on IC last year even expecting the time to coincide with the election, and the size of the resulting devastation.
This is not the first real estate bubble, is it? The fact that the US had a monkey running the economy made it the worst, fair do.
There have other types too, like the Black Tulips and the dotcom. The game is very simple, and is similar to cons by small crooks. Wall Street, and similar gangs in the past, create a greed hysteria where ordinary people make huge profits, for real, by the ever rising prices of sometimes bizarre items like dotcom shares in companies made worth billions despite having no trading or even an idea of how to make profits.
At the peak of the hysteria, the conmen who bought some of the stuff for very little sell it at a huge profit. That does not depress the market immediately because their share is a small percentage. Others in the financial industry, and their chums, get the signal and sell .. leading to an inevitable collapse.
It is like night following day. There is no doubt about it, but everytime the people and the politicians say this is different and the "boom and bust" era is now history. It sure is, but history wins again.
What is missing from the questions on the economy, because we have tried so neatly to tuck it away, is the question of overextension.
These financial issues may be a part of deregulation of the markets, that is an idea of the right. That markets can run themselves perfectly when unguided. But, is this the only problem?
It seems to me that Britain faced similar financial crisis at the end of Empire for them as well. And, it was part of overextension and part of the War. It seems to me that the comparative studies on over extension and fall of empire say this is a precursor, so why are we not discussing it? Denial? Fear of the bellicose? I doubt it has nothing to do with the issue. So bring it up. I was disappointed that Obama just skirted the possibility.
Very interesting. Was there a debate fact-checking #4? I noticed that it went from 3 to 5 and I'm eager to know if there is more.
Oops found #4 at the bottom. Thanks!
It needs to be kept in context that Fannie Mae and Freddie Mac are just one piece of this problem. Further, it is incumbent on Republicans to chastise Fannie and Freddie because of the Repub ties to the larger banks with which Fannie and Freddie would compete. Those banks and investment banks are obviously in no better shape, and contributed just as much to the debacle.
Post a Comment
<< Home