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The Credit Tsunami

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Before I even begin, I am a Greenspan fan! Under Clinton he was a genius of low unemployment percentage bliss. However, I do not believe he is as shocked as he claims to be by this crisis.

Is Alan Greenspan serious? In Alan Greenspan's most recent interview he called the current financial crisis a "once in a century credit tsunami." Then he had the nerve to end with how this would eventually pass and the nation would have a "far sounder" financial system for it. Um, hopefully that will happen by the time people who need to retire on what we can now refer to (thanks to his colorful quote) as a drowned retirement fund.

I wonder if the people who were actually hit by the tsunami a few years ago feel it has made them stronger, or made them more appreciative of what is left of their lives?

Greenspan needs to re-read (as I can only assume that he has at least skimmed) Adam Smith's Wealth of Nations. "When the regulation, therefore, is in support of the workman, it is always just and equitable; but it is sometimes otherwise when in favour of the masters."

Government regulations within the confines of protecting the public are a good thing! They regulate the amount of our income we "donate" to them, the speed we drive, the amount of public drunkenness we can display, and the emissions level of our cars — all in the interest of our safety and the safety of the world in which we live. I will point out that, in turn, we are supposed to regulate them and kick them out of office for pulling fast ones with our precious safety and well-being, not just for a little under-the-desk intern action, but I digress. Can they please regulate the banks that are recklessly handling our work force's money, credit, and future? They do not have to ultra-regulate. There is a difference between Stalinist socialism and protecting the people from irresponsible corporate policy.

I think what angers me the most is that these anti-regulatory monsters have set us all up for what will be the most regulated economy we have had in a very long time. I do not have the exact time, but wish that I did have it on hand. However, I do know that the only way to solve this now is with mass-regulation. Regulation on how they spend our $700 billion. Let us not forget that no foreign investors will trust us again unless they know our corporate toddlers are being watched — and watched carefully. My toddler could do better! Hey, she already knows that stealing is wrong and unlike the executives at AIG, it doesn't cost her $400,000 to play with her friends or wipe her own butt!

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About Nikki Petrazzuolo

  • Cindy D

    I think what angers me the most is that these anti-regulatory monsters have set us all up for what will be the most regulated economy we have had in a very long time.

    I have wondered, on more than a few occasions since the bailout, if the right-wing mentality as exercised through government is the single force that could bring us into state socialism, if anything could, as an hysterical counterbalance, brought about by action at the state level.

  • moon

    What you are calling state socialism is NOT.

    It is what Mussolini called Fascism–the marriage of government and business for the primary benefit of the latter.

    You have it in Gringolandia.

    We have it here in Mexico, where the Comercial Mexicana–a chain of supermarkets that went broke because its honchos speculated with derivatives was just given a more than 3 billion line of credit by the government.

    Then there are all those little guys that the Comer put out of business with WalMart tactics (the ones WalMart didn’t put out of business already), and all the little guys teetering on the brink now and getting the back of Calderon’s pudgy little hand.

    The big guys put The Spurious One in power.

    The little guy doesn’t have any clout, so Let him eat Gansitos!

    Gansitos are Mexico’s answer to Twinkies.

  • http://ruvysroost.blogspot.com Ruvy

    What you are calling state socialism is NOT. It is what Mussolini called Fascism–the marriage of government and business for the primary benefit of the latter. You have it in Gringolandia.

    Finally! Someone who honestly understands fascism! What a shocker! After all the “left wing” shmendriks who cry fascism on this site without a clue as to what it is, someone comes along (other than me) who truly comprehends what the stuff is all about.

    It is important to note here that Mussolini started out as a socialist in northern Italy, and modified his views because he wanted Italy to enter the Great War and oust Austria from Italian territory while all his more doctrinaire friends (like Lenin in the Café Internationale in Vienna) wanted to sit the whole war out sipping lattés in coffee shops and discussing how they were going to bring the working class to power once the kulaks and bourgeousie fell.

    When the government in Italy proved its total incompetence in running the country after the Italians had gotten Trentino Adige and Trieste, he was able to organize a semi-socialist revolution with an ideology that was more air than reality. Because he wanted to benefit the rich rather than the poor, the rich flocked to the order he promised the country. Thus it was that the thuggery that followed on the first year or so of Mussolini’s ascension to power was tolerated in Italy.

    We have the same thing in Israel today. Former socialists who have decided it was more fun to be rich than virtuous. So, we see their thuggery tolerated here.

  • moon

    Yep, Ruvy, it’s the same model. Il Duce knew which side of his bread to put the extra virgin oil.

    And it spreads wherever there is a strong Gringo influence because it’s the big Gringo companies imposing globalization.

    There is a growing consensus in South America against it–perhaps because those folks suffered so much under it in the last century.

    But it’s still a small hope.

    If the Gringos succeed in their plan to assassinate Chavez, it will be the death knell for the planet.

  • pablo

    Right wingers fascists? Surely you jest. :)