Wednesday, September 24, 2008

What is Happening Here, Really?

George W. Bush gave a pretty good speech tonight, one that reminded us that he is the first President ever who actually holds an MBA. He deconstructed the current financial crisis in terms that the 95% of Americans who didn't study economics could probably understand. He sounded like a smart doctor with a good grasp of the diagnosis, explaining what has happened and what kind of danger we now are in.

But, what he didn't do convincingly was to suggest a cure. Why? Well, to understand we have to roll back to the days when this President sold his decision to invade Iraq. He essentially said, "Trust me," while exploiting the credibility of his Secretary of State, Colin Powell, among others, that (in the wake of 9/11, lest we forget) Sadaam Hussein had WMDs.

He knew better, but he allowed himself to be propelled ahead, cynically, by a small core of advisers led by one of the most evil men of our time, his own Vice-President. Thus, he squandered the political capital he needs now, when our country faces a real crisis (apparently).

Anyway, this is the context for the skepticism that has greeted the President's bailout plan. We have lots of folk tales to describe this moment, e.g. "The sky is falling!"

Perhaps the sky is falling, and not just on the heads of those greedy, arrogant Wall Street traders who for so long have acted as if they are better than all of the rest of us, here in Middle America, struggling to pay our monthly bills.

But, if so, my guess is that ordinary Americans will reject this Bush plan anyway. The President simply is not trusted by anyone any longer; sadly, even when he perhaps should be.

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