David Mitchell
Personally Mike,
I loved his espression "I spent the coldest Winter of my life, one summer in San Francsico".
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Geting back to John's point about saving the Auto industry....
(to begin with, I also think Bush II handled the eonomic collapse poorly. But I'll come back to that)
As for Barack's part in this;
I am not so sure we should have saved Detroit. After years of Board Room bad decisons and genarations of internal inefficiency and lack of innovation, all we seemed to have done is to perpetuate this group of good ole boys and their lack of innovative thinking. Of course I do get the fact that we risked temporary unemployment on a painful scale, but I doubt it would have taken long before new money would have stepped in and reformed much of the auto industry, albeit with a number of "parts" sold off and spin-offs here and there. Detroit has fought innovation so hard, I specualte that new blood would have launched us into a new era of improvements, from better design and safety, to better fuel economy, and even better employee/managment relations (like the Japanese). Change is painful over the short run. But lack of change can be slow death, or at least stagnation.
I don't recall ever reading accounts of the government stepping in to save the gas light manufacturers, or the buggy whip makers, when "change" left them behind.
As for Bush. I recall an article in the Wall Street Journal about 2007, describing a meeting between Bush economists and a group of Wall Street leaders. The meeting was about trying to reduce the growing risk of "derivatives" - that awful creation of Wall Street gamblers. Instead of placing some limits on the use of this (complicated and unethical) trading mechansim, the Bush officials admitted not fully even being abe to understand what derivatives were, and went away from the meeting giving even more freedom for Wall Street to use them. Nice work guys!
It was less than a year later that the bubble burst on Wall Street (as a result of both the mortgage bubble, AND the derivatives market. Bush had a major role in that lack of regulation - leading to the collapse.
Before we get on my comments on Barack's role in this, I have to comment about where this mortgage nightmare began. I believe it was during the reign of His Majesty "Taco Bill" (Clinton) when his extension and reinforcemet of the "Community Reinvestment Act" (an idea with good intentions, but ridiculous elements - help people buy homes easier in poor economic conditions), and the decison by his new Secretary of Housing and Urban Development (HUD), one Andrew Cuomo (now Governor of NY.), who allowed the use of the new mortgage standards, basically doing away with any common sense qualificatinos for a residential mortgage application. I was in the mortgage business in Columbus at the time and watched these new "No Doc - No Income" loans come into prominence. ("No-Doc" = no documnetation, or no written proof of job or income - at all!. A recipe for disaster!). We jokingly called them "Liars Loans". I began to get nervous about it all and left the business in 2002, well before the crisis.
And while I'm throwing blame around like a fire hose out of control, Let's not forget that one of the "pushers" behind the Clinton easy mortgage movement was Texas Republican Phil Gramm, who it is alledged, profited greatly from his banking friends for the favor of his support in this new way of doing business. (BTW, it is said that Republican Senator Phil Gramm made more money of his lobbying friends while passing less effective legistalation than almost anyone in his time in office - ranking him up close to Senator John Kerry in that noteworth category). You will recall Senator Phil Gramm is the one who called Americans a bunch of cry babies during the great recession of 2008, and for that statement, John McCain fired him as his campaiagn manager.
But back to my main objection to Presidnet Obama.
He stepped into office in the midst of the worst economic mess in our life times. He had a clear mandate (a mandate I doubt would have found any resistance even from Conservatives) to clean up the Wall Street "gambling halls" and the "Easy Money" mortgage market. He had every right and much legal precident to both fine the big banks, and serve prison sentences on the Wall Street perpertrators for their criminal activities - for example;
John Mack - Morgan Stanley
Lloyd Blanfein - Goldman Sachs
Richard Fuld - Lehman Brothers
Ken Lewis - Bank of America
Jamie Diamond - JP Morgan Chase
And many of their top executives. Oh heck, lets throw in Kathleen Corbett of Standard and Poor's rating agency - and the list could go on, an on, and on.
Instead of indictments and prison terms, these people were personally untouched. Rather, the government sought (and won) huge cash penalties from these banks. But according to legal experts, this is a strange legal precidnet - not going after the perpetrators personally.
The reason given was that the Obama administration used as it's guidelines, an obscure memorandum that was writen some time before while the author served as a young Deputy Attorney General. The memo is often referred to under two nicknmaes - "The Holder Memorandum", or the "Too Big To Jail" memorandum. Yes, that would be Eric Holder, Obama's Attorney General.
Many consider this one of the greatest miscarriages of justice in our recent history. I tend to agree.
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