Nice metaphor for Wall Street's Clusterfuck:
This situation reminds me of that old fable, where people are standing by the side of a river and they keep seeing babies being rushed down the river in the current and they desperately reach out trying to save as many babies as possible. Day after day they're reaching out. They get new tools, they build a bridge, they get a ladder, they're constantly trying to get to those babies. They're hoping that they can save as many, until finally somebody walks up and says, “Who's throwing them in? Go upriver, find out what the real problem is and stop that!”
That would be leadership:
This is the greatest market upheaval since the Great Depression. We are, indeed, in a crisis, and in times of crisis there are opportunities for leadership. Congress could show the American people that leadership working with the President by embracing this bold proposal.
And a concrete policy proposal, at least for homeowners:
Now, I personally believe and was among the very first to suggest that a HOLC, a Homeowners Loan Corporation, could be a preferable way of unfreezing and beginning to fix our struggling mortgage market.
Just yesterday in the Wall Street Journal, Paul Volker, and Eugene Ludwig and Nicholas Brady made such a proposal. They said a HOLC, an RTC, we’ve got to come up with an entity that will assume these debts and burdens and begin to work our way out.
A new government entity like the HOLC with a focus on attacking the source of the problem can serve the purpose of clearing a lot of those toxic mortgage securities from the market. We know there will not be any semblance of a normal or orderly marketplace until we have found a way to resolve these mortgage securities that are metastasizing in the bottom of our markets. By taking this paper out of the market and quarantining it in this new entity we will be able to give the market breathing room to recover.
Why not do what's worked in the past?
ast spring when I called for a modern version of the HOLC, that’s the Depression-era entity that bought up old mortgages and issued new, more affordable ones in their stead, most people did not pay much attention. But I think it's important to note that by the time the HOLC closed its books, that agency had turned a small profit and helped over a million people keep their homes. And this was 70 years ago. Our population has grown dramatically. So, obviously, if we did it right, we would be able to save a lot of homes. And I think if it is administered correctly it could be actually a net expenditure or even winner for the federal government.
Well, by now, I suppose you've guessed that's from Hillary, today.
So, I checked Obama's website (haw), and the economy section isn't a complete disaster, but there's nothing current and nothing like Hillary's plan at all-- though I'm open to correction by Obama supporters who know his oeuvre better than I do. And I checked Obama's Speech on the economy, which, and the closest I can come to what Hillary's saying is this:
I worked with leaders in Congress to create a new FHA Housing Security Program, which will help stabilize the housing market and allow Americans facing foreclosure to keep their homes at rates they can afford. Going forward, we need to replace Fannie Mae and Freddie Mac as we know them with a structure that is focused on helping people buy homes not engaging in market speculation.
But where Hillary out-policy's Obama is that she attacks both people losing their homes and the toxic financials. Obama doesn't integrate like that. Sigh.
Just on the off chance, I went over to Jeralyn's place to see if Hillary was following Obama's lead, or something, and it was all Palin Palin Palin. Ditto The Obama 527 That Used To be Daily Kos. Nada. WKJM was all Palin Spain Palin Spain.
The vapidity and irrelevance of BS 1.0 -- modulo some individuals within te decaying structure -- has never been more clear.
NOTE And that goes double for Harry Reid.
UPDATE And back in March...