Friday, December 21, 2012

Shlock doctrine

In the Wall Street Journal this morning a story noted that the futures were off as everybody was apprehensive after Boehner said the Republicans had balked at his "Plan B". I quote:  "A selloff in the US Friday would revive memories of September 2008 when the chamber voted down the Bush administration's first Wall Street bailout plan, sparking a 778-point fall in the Dow Jones Industrial Average."  Ummm. The Dow ended up the day down 121 points, not even a percent down.

Similarly, a new conservative member of the Board of Commissioners or whatever in my mom's hometown voted not to approve funding for the next phase of a Senior/Recreation Center, stating that it would be irresponsible to move forward, given that "we're in a depression."

Well, I'm sorry, but this is all bullshit. We are alternately beset by memories of the financial crisis and their shadows, but we are not still there. It's all reminiscent of Naomi Klein's shock doctrine.  The deep-pocketed (of whom there are many) are trying to freak out the less so by preying on their fears, the better to scoop up their assets. Unemployment is not crazy high, the markets aren't insanely overvalued, and the fiscal cliff is not the abyss that was autumn 2008.  Shit, the Fed just put forward QE4, promising to pump another $45 billion of liquidity into credit markets monthly, on top of the $40 billion it pledged just a few months ago.  This most recent tranche, at $540 billion annually, is just about equal to the total projected impact of the Fiscal Cliff if we go over it.

Shit is a little bit crazy out there, but it ain't all that..

No comments: