Opposing a Bailout is Anti-American
So who is responsible for the economic mess the U.S. finds itself in?
Easy question, says Sebastian Mallaby on the Washington Post opinion page, anti-Americanism is behind this. Especially European anti-Americanism:
Fearing that weapons of mass financial destruction lie hidden inside Wall Street palaces, the United States is mobilizing the big guns: a fiscal stimulus, sharp interest rate cuts, the Fed's promise Friday to pump money into the markets. Meanwhile, Old Europe sits on its hands: The European Central Bank has left interest rates unchanged since June and has lectured governments about budget deficits.
A rightwinger is up in arms because a central bank cares about budget deficits. How could they ...
While, between the lines, Mallaby acknowledges that the U.S. may have been somewhat wrong on Iraq, he is still convinced that pure anti-Americanism let a majority of Europeans oppose the war. Therefore the recent fall of the dollar must have anti-American roots too:
But surely at least some foreigners can see the tragic dimension here. The United States went into Iraq because, even if mistakenly, it wanted to rid the world of a menace. For this, the world hated it. The United States is throwing money at its economic difficulties because it sees a threat to its prosperity and also to the wider world. For this, the world scorns it. Investors are responding to America's economic activism by dumping dollars the way they once dumped dot-com stocks. The would-be saviors of the world economy can no longer afford lunch in Europe.
Mallaby doesn't quote any foreigner to somewhat found his assertions. Europe fighting inflation, while the U.S. heats it up, is just a way to prevent the U.S. from doing something good. Tax rebates in the U.S. are not some selfish act, but the U.S. caring for the "prosperity of the wider world".
... and it is the Europeans' fault that Mallaby the Savior can no longer afford to dine in Paris.
This is whining to the highest degree. But Mallaby is not alone there. Yesterday Jerome deconstructed a Business Week piece titled:
More Fodder for the Yank-Haters - The spreading U.S. credit crisis is turning up the heat on Europe's simmering anti-Americanism
Anti-Americanism was already simmering because of the Iraq war, dislike for President George W. Bush, and mistrust of rampaging buyout firms. Now, Europe's pundits and politicians are feeding public perceptions that ordinary folks will be left paying the bill for the financial missteps of big banks.
Not favoring tax payer bailouts of greedy big U.S. banks is anti-Americanism. It is that simple.
But don't shove that away as just simple lunacy. The real target here are not Europeans, but U.S. progressives. This 'anti-American' concept will be adopted to any opposition against a bailout within the U.S. itself. It is anti-American to NOT socialize losses.
When Congress will act to nationalize a bankrupt Citibank, at a tax payer cost of a few $100 billion half of which will 'compensate' Citibank shareholders, the law will be named "Patriot Act III". To oppose it will constitute treason.
That seems to be the trend here and I suspect it will get worse - much worse. The fall of the U.S. economy into recession must be the result of European anti-Americanism, general anti-Capitalism, the progressives, Move-on.org, the 'left', etc.
It is simply impossible that the system itself is the problem.
Posted by b on March 10, 2008 at 11:25 UTC | Permalink
yes ô yes - these attackers of welfare & social programmes & all forms of assastinat go to the public trough quicker than pigs into shit
social welfare they couldn't give a fuck about - but their welfare is another apple entirely, is it not
Posted by: remembereringgiap | Mar 10 2008 12:07 utc | 2
The United States went into Iraq because, even if mistakenly, it wanted to rid the world of a menace.
that's a goddamn lie. we're there to steal the oil, funnel billions to well-connected war profiteers, and erect permanent bases from which to menace anyone else who doesn't genuflect before their US/Israeli masters.
Posted by: ran | Mar 10 2008 13:23 utc | 3
They (US) hate us (Europe) for our freedoms.
If I ever get my tax rebate I'm spending it abroad, naturally.
Posted by: Tantalus | Mar 10 2008 13:38 utc | 4
How about we look at the true objectives of Mallaby, Biz Week and the thousands of others who support destructive policy. Sure, perhaps most of them are simply stupid enough to swallow the line. BTW I feel that it is counterproductive in some way to continue quoting these idiots; we the readers have grasped the depth of their desperation well enough already.
My point was and is that somebody (not Mallaby) is in the process of purposely destroying our economy; these bad calls are certainly not due to stupidity at the upper management level. Stop and remember that this effort has been in place developing for a very long time, several generations at least.
One can never find a solution to the current crisis, crash of the dollar, or any of the many associated issues pre and post, without first exposing the driving force making it happen. Begin by acknowledging that it is intentional, not a mistake, and that most of the talking heads we see and hear are puppets.
Posted by: rapt | Mar 10 2008 14:21 utc | 5
Norquist and his "drowning in the bathtub" of the U.S. government is actually quite the lucrative operation for those in the bubble. The first step is using Fox, Limbaugh, etc pounding the ears of the populace for years with tales of bloated government and over-taxation, associating in the minds of their dull listeners government = evil. Next, once in power thanks to the dullards (and a couple of Supremes who are in on it), keep agencies like EPA and FEMA alive in name only (kind of like the cut-out duplicate town in "Blazing Saddles") in order to stuff them with Bob Jones U and 700 club alumns who are true Bushbots. Next,keep the budgets for these agencies intact but divert the funds elsewhere - let's say to a contractor hired by Homeland Security, run by let's say a Bush "Pioneer", which produces an unproven piece of technology which is inferior to existing technology produced by contractor's in, let's say, a geographic area which votes heavily Democratic. This Pioneer then funnels a % of the government $ back to the RNC, and everybody gets paid. And if you an toss a war in the mix, well hell, then the cash register really starts to ring, and you can blame the ever-expanding government budget to the dullards in patriotic GWOT terms. Plus, you get to flood the world with dollars and cheap credit, creating a "boom" which you can take credit for - and when it busts blame the poor and people with "sub-prime" credit (code for minorities and lazy hippies).
Now, this Enronization of America sucks all the money into the giant RNC sucker, and leaves the states without funds to maintain infrastructure, social programs, education, etc. So, they are forced to raise property taxes to try and offset, while at the same time wondering just where Wall Street has invested the state and municipal pension money and if this money is secure (it's not). Meanwhile, the dullards go to church trying to understand why they are struggling financially and why their community is deteriorating so rapidly, and the minister explains it's Gods will because we have embraced homosexuality and neglected the unborn.
As rapt says above this dismantling process has been in place for a very long time (the middle class in America has been in recession since 1975) - and more precisely it is simply a huge con, a transfer of America's wealth into a very few dirty hands. Since they now own the DOJ and can eavesdrop at will, hard to see how they are brought to answer within societies normal channels.
Posted by: Mart | Mar 10 2008 15:42 utc | 6
Heaping drivelous contumely upon Captain Sebastian Mallaby of the good ship WAPO serves only to earn you hippy wordmeisters slow coach tickets to the irrelevant side of American culture.
The class war is over and done. The Upper East Side Liberation Army took every hill and dale, while you were watching TV, while you were seeking the meaning of life in things other than money and power.
Money and power are life itself. UESLA knows this; that's what put us on top and keeps us on top.
Captain Mallaby is in with the in-crowd, a commissioned member of UESLA with the full benefits of membership, like insurance for health, life, vehicle, and mortgage. With a great salary for his neighborhood, with a pension plan, with investments, and with a circle of friends and contacts that will see to his well being just as he sees to theirs.
He's got gel with UESLA, baby.
What you got?
Posted by: UESLA | Mar 10 2008 15:57 utc | 7
You gotta give Mallaby credit for correct observations:
In European capitals these days, the anti-Americanism that flared up with the Iraq war is joined by a new schadenfreude. Americans thought they could splash money on foreign policy adventures and 50-inch TVs; now a nation fueled by debt is facing its comeuppance.
And deduct it straight after for drawing idiotic conclusions:
Americans resent Europeans for not sharing the burden of stimulating the world economy, forcing them into unilateral action.
But hey, its not all doom and gloom in the US. Investors take note, higher unemployment rates are good news.
Crime pays for US prison firmsFinanciers, real estate agents and car salesmen might be suffering from America's economic malaise, but bulging jails have triggered a profit boom for corrections companies.
Posted by: Juan Moment | Mar 10 2008 16:54 utc | 8
Clear evidence of perfidious European Anti-Americanism:
Failure to invade Iraq
Failure to pump sufficiently massive amounts of carbon into the atmosphere
Failure to work like insects and take no holidays off work
Failure to smear suburban sprawl across the landscape for miles and miles and miles
Failure to build up massive trade deficits
Failure to build up massive budgetary deficits
Failure to build up massive levels of household debt
Failure to hollow out domestic manufacturing sector
Posted by: Mike | Mar 10 2008 18:05 utc | 9
remembereringgiap:
yes ô yes - these attackers of welfare & social programmes & all forms of assastinat go to the public trough quicker than pigs into shit
I wonder how many of those wingers, that have spent years bashing welfare recipients, will be returning their welfare checks to the government in May? I don't really have to answer that do I?
This is interesting in that America is suffering from a massive debt crisis and all their prescriptions so far are more debt. Lend more money to the banks and lend more money to the people. That will sure fix it alright.
The lone Superpower of the World that bragged they were going to remake the entire Middle East is reduced to a simple beggar. They are sending Cheney to beg Abdullah to open up the oil spigots.
He was expected to reinforce the message from Bush, who had urged OPEC to increase production during his visit to Saudi Arabia in January.
http://www.reuters.com/article/hotStocksNews/idUSWAT00909120080310
I'm sure I don't have to tell you what the Arabs are going to tell Cheney:
Arab investors, flush with revenue from record oil prices, once again see golden opportunities in Africa. From waterfront resorts in Cape Town to phone networks in Democratic Republic of Congo, they are pouring in billions of dollars.
http://www.reuters.com/article/hotStocksNews/idUSL0792804920080310
After all, the US has had 8 years of the most business friendly government since Herbert Hoover.
Posted by: Sam | Mar 10 2008 18:11 utc | 10
Oh yes -and:
Failure to stuff sufficiently massive numbers of its citizens into prisons
Failured to have sufficiently high murder rates
Failure to allow its citizens the democratic right to bear arms
Failure to encourage its schoolchildren to smuggle arms into school and massacre their fellow schoolchildren
Posted by: mike | Mar 10 2008 18:12 utc | 11
Mallaby:
But surely at least some foreigners can see the tragic dimension here. The United States went into Iraq because, even if mistakenly, it wanted to rid the world of a menace. For this, the world hated it.
Russia thanks you, Saudi Arabia thanks you, Venezuela thanks you, China thanks you, Al Queda thanks you.
Posted by: Sam | Mar 10 2008 18:35 utc | 12
We all know why the USA went into Iraq, only the most narrow-minded Bushite is aware that it had almost nothing to do with "spreading democracy" or "removing a terrorist threat".
But if there's one thing that Amricans hate about uppity Europeans, it's when they remind us that we f***ed up again.
Posted by: ralphieboy | Mar 10 2008 19:07 utc | 13
When you read such dementi Bear Stearns' Greenberg dismisses cash crunch talk you can be sure there is a lot of trouble there.
Bear Stearns Cos (BSC.N: Quote, Profile, Research) and its former chief executive denied on Monday market speculation that the investment bank faced a cash crunch, helping pare losses after its shares had fallen to a five-year low.Ahhh - "totally ridiculous" - that doesn't mean "no". That might well mean "Yes and its totally ridiculous that we are indeed bankrupt".Bear's chairman of the executive committee, Alan "Ace" Greenberg, told Reuters speculation that the investment bank and securities firm was facing liquidity problems were "totally ridiculous."
Yassah EUSLA you said it right man. I was wondering, since we're both MOAers and all, if could say a good word for me at the Club - I just applied for a job in the laundry there and...could use a boost if ya know what I mean. Oh and while I got ya on the line Eusy, think you could see fit to help me with last month's house payment? I'm a little short.
Posted by: rapt | Mar 10 2008 19:15 utc | 15
Mart #6 has it exactly.
That seems to be the trend here and I suspect it will get worse - much worse. The fall of the U.S. economy into recession must be the result of European anti-Americanism, general anti-Capitalism, the progressives, Move-on.org, the 'left', etc.
This is what the real scary is.
Posted by: Cloud | Mar 10 2008 21:57 utc | 16
I realize I have a weird sense of humor, but I find this article extremely amusing.
The regulator of Fannie Mae and Freddie Mac on Monday joined the chorus of regulators and government officials suggesting that if the two companies raised more capital it would help the housing market.
I think that's a fantastic idea, Mr. Regulator... would solve all kinds of problems. Just one thing... probably not important... but, uh, how exactly do you intend to "raise more capital"? A bake sale perhaps?
These institutions are, by all normal accounting standards, bankrupt. Their "assets" are largely worthless and no sane investor would give them a dime. Just wishing for more capital and saying it over and over doesn't make it happen...
Posted by: Chemmett | Mar 11 2008 0:51 utc | 18
Fed to Lend $200 Billion, Take on Mortgage Securities (Update3)
The Federal Reserve, struggling to contain a crisis of confidence in credit markets, plans to lend up to $200 billion in exchange for mortgage-backed securities.and by banks - the Fed is now officially takeing junk as collateral for lending out treasuries.The Fed coordinated the effort with central banks in Europe and Canada, which plan to inject up to $45 billion into their banking systems. The Fed said in a statement it will hold auctions of Treasuries in exchange for debt including AAA rated mortgage securities sold by Fannie Mae, Freddie Mac and by banks.
What is the Fed going to do if it now takes on some 20 billion of citibank issued CDO's and citibank goes belly up a month from now?
The comments to this entry are closed.
Yes, the cries of "get the government off our backs" and "let the markets work" have been strangely muted of late.
Posted by: Maxcrat | Mar 10 2008 11:42 utc | 1