February 24th 2009
Wall Street, DC
Politico points out something rather troubling to those of us who remember the spectacular failure of Soviet and Chinese five-year plans: Washington DC is now the financial capital of the USA. And true to form, as investors start looking to the dismal swamp instead of Wall Street for signs and omens, the results are not good.
Remember last summer when Chuckie Schumer (chair of the Joint Economic Committee of the Senate) criticized IndyMac’s precarious financial condition? Remember how there was a run on the bank and it failed a few days later?
The banking regulator said it closed IndyMac after customers began a run on the lender following the June 26 release of a letter by Sen. Charles Schumer, D-N.Y., urging several bank regulatory agencies that they take steps to prevent IndyMac’s collapse.
In the 11 days that followed the letter’s release, depositors took out more than $1.3 billion, regulators said. (CBS)
Then the admin’s chief tax-dodger Tim (“Only Little People Pay Taxes”) Geithner bumbled the roll-out of the supposedly brilliant next step of the supposedly brilliant Obama team’s financial recovery scheme and the market fell 382 points.
Then last Friday, Senate Banking Committee Chairman Chris (“Mortgage Meltdown? Me?”) Dodd told Bloomberg TV’s savvy audience that banks could be nationalized and the Dow plummeted a hundred points in 60 minutes.
Finally, just yesterday Prez O himself chaired the Fiscal (“Ir-”)Responsibility Summit, held a press conference, and led the Dow to a 251-point drop.
What does the Left have to say in retort? Not much:
Not only is there no particular significance to the stock market as such, but there’s no particular significance to [the Dow]. (Yglesias)
Matt, as I watch my 401(k) dip to 40% of its prior value, I say there is significance, very real significance, to the market. For starters, it’s a pretty good measure of consumer confidence, and we have never exited a recession on crappy consumer confidence. And if you don’t like the Dow, show me one broad index that is performing much differently from it.
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