Mar 10 2009
Words of wisdom from the very liberal Jim Cramer:
It’s time to get serious. It’s time to take the issue from the pundits and from the left and right, and put it where it belongs: serious non-ideological debate to put out the real firestorm, the collapse of the economy fromÂ Wall StreetÂ to Main Street and the ensuing Great Wealth Destruction for all.
But if it stays ad hominem, we will all be betrayed and the train wreck will become inevitable.
No more wishing we continue down the path to ruin. Now is the time to not hope for failure, but a time to Â hope a sufficient number of people realize we need another ‘change’ from the liberal/Obama policies. An we need to hope that a sufficient number of people can pull together to oppose Obama and the liberals. Which means ending the demagoguery and starting to make compromises and alliances.
And the potential to avoid the train wreck is there:
Democratic leaders in Congress did not expect much Republican support as they pressed President Obama’s ambitious legislative agenda. But the pushback they are receiving from some of their own has come as an unwelcome surprise.
As the Senate inches closer to approving a $410 billion spending bill, the internal revolt has served as a warning to party leaders pursuing Obama’s far-reaching plans for health-care, energy and education reform.
This not the time for “I told you so“, it is time for “Let’s work together and fix this mess” before even more damage is done. Â Too many responsible and innocent Americans have suffered already. Leadership is different from sniping from the sidelines.
Update: According to the Washington Post we are now supposed to pity the fools who are bungling the recovery?
Pity Barack Obama’s economic advisers. The blogs are now demanding their scalps, and Treasury Secretary Tim Geithner and his colleagues face a nasty dilemma: There are no solutions to the banking crisis without extraordinary political and financial risks. Thus, they have adopted a three-pronged approach, delay, delay, delay, in the hope that somebody comes up with a breakthrough.
Here’s the problem: Today’s true market value of the U.S. banks’ toxic assets (that ugly stuff that needs to be removed from bank balance sheets before the economy can recover) amounts to between 5 and 30 cents on the dollar. To remain solvent, however, the banks say they need a valuation of 50 to 60 cents on the dollar. Translation: as much as another $2 trillion taxpayer bailout.
That kind of expensive solution could send the president’s approval rating into a nose dive. Consider: $2 trillion is about two-thirds of the tax revenue the federal government collects each year.
Emphasis mine. Maybe the klutzes should have thought of that before they rushed through the pork laden Spendulus bill, which would have covered about half of this problem. Now we have $1 trillion of wasted money going to useless projects that won’t create jobs for another year at least, and we have no more money in the treasury to deal with the core problems. The chart below is the massively insane deficit spending without the banking bailout:
Why should we pity such gross incompetence?