What delicious chaos has unraveled in the global markets, wouldn’t you all agree? With the collapse of Lehman Brothers, the acquisition of Merill Lynch by Bank of America, and the Fed’s bailout (and consequential nationalization) of insurance giant AIG, investors yesterday proverbially shat their pants as stocks plummetted throughout the world. Some people may call this the Apocalypse. Others who look at the recent natural devastation and rise of totalitarian regimes might say we’re in the End Days. I call it something less dramatic and more to the point.
Welcome to the Capitulation.
For the past two years, Democrats in Congress have had full control over all aspects of the economy, from Commerce and Finance, to Ways & Means and Appropriations. Since their takeover, the World Economy, which had stemmed recessions following the attacks of September 11th, has essentialy flushed the toilet. The Republicans in the White House haven’t exactly been stellar either. Suffering from an apparent psychotic break with their political reality, they actually spearheaded grotesque spending and brutal bailouts that make no market sense. In the words of Morgan Stanley CEO John Mack, “there is no reason for this panic.” Paranoia has always been patriotic in the United States, but this defeatism is laughable because all that is lacking right now in the world is confident leadership. In its place is childish squabbling, ridiculous ranting, and pointless partisanship.
The Capitulation is all about negativity and despair; Senator Barack Obama has made it a point to consistently criticize the economy while waxing doomsdayish about its ultimate fate. Senator John McCain, on the other hand, has it right — the fundamentals of the economy are strong — but lacks the charisma to deliver his point with convincing grace and directed gravitas. If the markets have been playing a bullish game of hope during the past two years, then, is what has happened in the past seventy-two hours a surrender to the reality of hopelessness?
Filed under: Politics
Let us test out the comment system.