JCC

McCain's Economics

It's true that McCain does not understand much about the econmy. He says so himself. But he is not alone. When I read the comments of many and listen to discussion after discussion, I realize that very few have understanding of the economy and the financial systems.

There is a lot of blame to go around. Clinton signed the repeal of Glass Steagall, but the bill was written by Phil Gramm. The penchant for deregulation is a common conservative philosophy. But even prominant conservatives are starting to talk about the necessity of regulation.

Asset backed securities started in the 70's and now you are talking about trillions and trillions. The problem is leverage which had reached unsustainable heights. Undoing all that leverage might create a financial freefall. At least Bernanke and Paulson are trying to do something about it.

Those who say that we should just let the market correct, must think that nothing can be done to cushion the blow. Sorry, but that is not how things work. We need to use our brains and chart a course out of this morrass. Of course many think that charting the course is liberalism. Sorry but we need to chart the course and plan the future. It is the only intelligent thing to do.