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Hello. Come on in. The daddy writes about current events, literature, music and, once in a while, drops something on you from back in the day to make you pause and ponder, stop and stare, and begin to wonder. Who knows? You may start to pace the floor, shake your head from side to side, then fall down on bended knees in a praying position and cry, "Lawd, have mercy! What is this world coming to?" Check yourself! But this blog is NOT about the daddy. It's about you: your boos, your fam, your hood, your country...our hopes and dreams of a better tomorrow. So let's make a pact: the daddy will put it on the track if you'll chase it down and hit him back. Together, we can definitely take it to another level. Shall we?"

Wednesday, September 17, 2008

Obama's Speech about the U.S. Financial Crisis

"the system has been experiencing postmodern bank runs. These don’t look like the old-fashioned version: with few exceptions, we’re not talking about mobs of distraught depositors pounding on closed bank doors. Instead, we’re talking about frantic phone calls and mouse clicks, as financial players pull credit lines and try to unwind counterparty risk. But the economic effects — a freezing up of credit, a downward spiral in asset values — are the same as those of the great bank runs of the 1930s."
--economist Paul Krugman
"His {McCain's} immediate reaction to the financial trauma that swept Wall Street and Main Street on Monday was to mock McCain for suggesting that the economic fundamentals are sound. 'What economy is he talking about?' the Illinois Democrat exclaimed in Colorado. Obama believes one strategy is to paint McCain as out of touch with the lives of middle-class families. Polls show the public already believes Obama is the more empathetic of the two candidates and more attuned to their everyday problems, and anything McCain says that reinforces the impression that he is out of touch will draw a sharp response from Democrats."
--The National


Yesterday, Barack Obama delivered an important speech about the economy in Golden, Colorado. The daddy knows that a speech about the economy is not sexy. It's not gossip about what Sen. McCain about Sen. Obama or what Sen. Obama said about Sen. McCain. These are good ideas that we should get used to listening to. Here's a part of the speech:

Over the last few days, we have seen clearly what’s at stake in this election. The news from Wall Street has shaken the American people’s faith in our economy. The situation with Lehman Brothers and other financial institutions is the latest in a wave of crises that have generated tremendous uncertainty about the future of our financial markets. This is a major threat to our economy and its ability to create good-paying jobs and help working Americans pay their bills, save for their future, and make their mortgage payments.

Since this turmoil began over a year ago, the housing market has collapsed. Fannie Mae and Freddie Mac had to be effectively taken over by the government. Three of America’s five largest investment banks failed or have been sold off in distress. Yesterday, Wall Street suffered its worst losses since just after 9/11. We are in the most serious financial crisis in generations. Yet Senator McCain stood up yesterday and said that the fundamentals of the economy are strong.

...So let’s be clear: what we’ve seen the last few days is nothing less than the final verdict on an economic philosophy that has completely failed. And I am running for President of the United States because the dreams of the American people must not be endangered any more. It’s time to put an end to a broken system in Washington that is breaking the American economy. It’s time for change that makes a real difference in your lives.

...Make no mistake: my opponent is running for four more years of policies that will throw the economy further out of balance. His outrage at Wall Street would be more convincing if he wasn’t offering them more tax cuts. His call for fiscal responsibility would be believable if he wasn’t for more tax cuts for the wealthiest Americans, and more of a trillion dollar war in Iraq paid for with deficit spending and borrowing from foreign creditors like China. His newfound support for regulation bears no resemblance to his scornful attitude towards oversight and enforcement. John McCain cannot be trusted to reestablish proper oversight of our financial markets for one simple reason: he has shown time and again that he does not believe in it.

What has happened these last eight years is not some historical anomaly, so we know what to expect if we try these policies for another four. When lobbyists run your campaign, the special interests end up gaming the system. When the White House is hostile to any kind of oversight, corporations cut corners and consumers pay the price. When regulators are chosen for their disdain for regulation and we gut their ability to enforce the law, then the interests of the American people are not protected. It’s an ideology that intentionally breeds incompetence in Washington and irresponsibility on Wall Street, and it’s time to turn the page.

Just today, Senator McCain offered up the oldest Washington stunt in the book – you pass the buck to a commission to study the problem. But here’s the thing ... we know how we got into this mess. What we need now is leadership that gets us out. I’ll provide it, John McCain won’t, and that’s the choice for the American people in this election.

Click here to read the full speech as it was prepared for delivery.

6 comments:

Anonymous said...

The financial crisis could be the chance for Barack to shine if he doesn't let the McCain distract him by going into the gutter.

Nicki Nicki Tembo said...

Add to that the AIG bust and cha-ching we are now over a trillion dollars in tax payer funded bailouts. Who knew that government intervention and a self correcting market were one in the same?

Toronto real estate agent said...

As a Canadian I am neutral in Obama vs. McCain fight, but I believe the best politicians can do for economy is to keep their hands off :)
Truly, I believe it's mainly FED and the interest rate policy applied in last 8 years to blame...

MacDaddy said...

anon: You could be right. Obama is hitting this issue pretty hard.
nicki: Well stated.
toronto real estate agent: Welcome. How did you find my blog? Your statement about the way the FED has handled for this past year is interesting. But I think the signs have been there since the mid-1980's, or at least since the beginning of the second term of Reagan. Although it's been exacerbated by the present administration, both parties are to blame; and it would be interesting to get your take on posts I'll be doing on this in the future. Thanks for coming.

MacDaddy said...

toronto: You might want to check out the blog called Rawdawg. The guy over there has a unique writing style, but he actually knows a lot about this financial crisis and has been writing about this coming crisis for some time. Check him out at: http://rawdawgb.blogspot.com/

Somebodies Friend said...

I just can't take all of this BS anymore. All these financial folks and polititians are sick and they need help!

MacDaddy, some time in the near future we should have a dicussion about what can be done to correct this serious problem.

Boy, I bet they would be the ones donating to a good cause if someone could give them some serious mental correction!