Fool me once…

By Michael Fraase

Tuesday, 23 September 2008 08:08PM CST

Section: Politics

Bailout failFirst it was the war on Iraq. Then it was the Patriot Act. Now it’s the Wall Street bailout and Paulson’s ultimatum. The Bush administration insisted that each of these abominations (well, two abominations; one in-waiting) had to be resolved immediately, with no time for debate; only blind and instant action. “Trust me,” was Bush’s mantra.

Well I call bullshit. In each case the corporate media received the Bush breathless warning of impending doom as gospel. It’s time to take a deep breath and look around at what’s really going on. Ask the questions that need to be asked.

The stock market dropped another 160 points today but the lights are still on. If the credit markets were really on the verge of collapse, wouldn’t the banks be eager to renegotiate homes in—or on the verge of—foreclosure? Why isn’t this happening? Why aren’t we hearing stories of small businesses having their loans called in or their lines of credit being slashed? Do a Google search for “interest-only mortgage”—about 748,000 results. Why are these toxic mortgages—the root of the problem, remember—still out there?

Most importantly, where’s the evidence? Not hand-waving, not predictions, not scenarios, but evidence.

We’re told repeatedly and without mercy that the markets are failing. But how does that cotton with Warren Buffett investing US$5 billion in Goldman Sachs?

How, at the end of the day, does Bush explain that his administration has been planning the emergency bailout—and its attendant ultimatum—for months.

“[White House Deputy Press Secretary Tony] Fratto insisted that the plan was not slapped together and had been drawn up as a contingency over previous months and weeks by administration officials. He acknowledged lawmakers were getting only days to peruse it, but he said this should be enough.”

Simmer down and ask the questions that need to be asked.

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