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It is in the prosecution of some single object, and in striving to reach its accomplishment by the combined application of his moral and physical energies, that the true happiness of man, in his full vigour and development, consists. Possession, it is true, crowns exertion with repose; but it is only in the illusions of fancy that it has power to charm our eyes. If we consider the position of man in the universe,—if we remember the constant tendency of his energies towards some definite activity, and recognize the influence of surrounding nature, which is ever provoking him to exertion, we shall be ready to acknowledge that repose and possession do not indeed exist but in imagination. - Wilhelm von Humboldt, The Sphere and Duties of Government (The Limits of State Action) (1854 ed.)

Tuesday, October 7, 2008

Financial meltdown links cont.

Peter Morici:
The Dow Tanks as Bank Bailout Fails to Restore Confidence
It’s official! The bank bailout has not worked.

Global stock prices are in a panic rush to the bottom.

The bank bailout cannot fulfill its primary mission to restore investor confidence, because it does only half the job.

The bank bailout will provide banks with much needed liquidity but it does not address the compensation and management practices on Wall Street that drove irresponsible decisions and gave rise to the crisis. It does not address the void of sound leadership at the top of major financial institutions like Citigroup and Merrill Lynch.
Dean Baker: The Fed Can Buy Commercial Paper Directly From Corporations: Who Knew?
Remember way back to last week when it was going to be the end of the world if Congress didn't pass the bailout package? Remember the Washington Post's account in which Treasury Secretary Henry Paulson told President Bush, "there is no Plan B."

Well, it looks like the Fed has discovered a Plan B. It turns out that the Fed can buy commercial paper directly from non-financial corporations needing credit to maintain operations. This will keep the credit markets working even if the zombie banks aren't up to the task. In other words, the threat of a complete meltdown in the absence of a bailout was nonsense and the media once again got taken for a ride by the Bush administration.
Paul Krugman: The International Finance Multiplier

Finally, if you think Obama is going to be any better, then you really do not understand that our system of government is actually corporatism. See opensecrets.org:

1 comment:

checkman said...

On campaign finances: If you think that's bad, the Republicans are now accusing Obama of having accepted illegal contributions.

"The Obama campaign only recently began requiring donors from overseas to provide a valid United States passport number when making a contribution. Previously, it had simply required donors to check a box certifying they were U.S. citizens."

The words "reckless" and "irresponsible" come to mind.

The GOP is probably correct in their accusations. The only questions now are whether the FEC will do anything about it, and if they do, whether that will happen before or after the election.