Blind man's roulette
"We've re-established 'moral hazard,'"
A person involved in the Lehman talks this weekend offered that breathtaking analysis to the (Murdockal) Wall St. Journal, which repeated it soberly -- a tidbit in its massive coverage of Wall Street in Crisis.
This bloodletting is the cure. The crisis began back in 2000, when Bush/Cheney got elected. Soon after, the regulatory framework - what was left of it -- took a barrelful of buckshot in the face, and people without homes, money, or jobs were buying property and discovering the joys of home equity.
An isolating, maverick, insensate war does not go together with lower taxes and tsunamic mortgage fraud (or, "overtrust" as suggested by someone on the WSJ's "Deal Journal"). The people who re-sent in the clowns in 2004 still do not see this. When Bush & co. bribed middle-class favor by tacitly giving USians freedumb to do anything, say anything, promise anything to one another in the business arena so long as the admin had a blank check to keep shooting people in the Middle East, we as a polity forfeited any claim to "moral hazard."
Should this sort of vision lead not to a dethronement of Bush, but to a sort of sublimation of his lunacy into President Palin, the USian game of "fool me a million times - fool me more fool me more fool me" will have risen to its greatest challenge.
Labels: apocalyptic economics, bush economics, Bush is insane, fraud, friend of Cheney, john sydney McCain III, Lehman Brothers, Merrill Lynch, mortgage lending, real estate, Sarah Palin, Wall St. Journal