Did Bush and Paulson Cause Global Panic?

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The editorial in Sunday’s Janesville Messenger titled “Some lies are worse than others” was another one-sided but amusing attempt by the newspaper to throw the blame for the current economic catastrophe onto the back of yet another Democrat.

Janesville Messenger Editorial Excerpt:
The feckless Reid, …..said last week that quick action was needed to bail out the ailing financial industry because a “major” insurance company would go bankrupt if markets weren’t calmed. Already skittish investors reacted immediately, sending stock prices for three of the largest insurance companies plunging.

Reid could have said “major” automaker just as well, it wouldn’t have surprised anyone. But the truth is, it was soon revealed that AIG, the world’s largest insurance firm needed an additional $38 billion on top of the $85 billion loan they received from the Fed just two weeks earlier. There was no need for Reid to apologize for his statement. There was some truth behind it.

But the consequences resulting from Reid’s remarks posed little danger and were easily repairable when compared to statements made by Treasury Secretary Henry Paulson on September 24th when he waltzed into Congress like a man yelling "fire!" into a crowded movie theatre.……

Paulson Warns Of Consequences:
Architects of a $700 billion bailout plan urged US lawmakers to act swiftly or face dire economic consequences as global stock markets fell for a second day on growing concern the rescue may be delayed.

Unlike the vague warning Reid spoke of mentioning a “major” insurance company, no one had to guess which global stock market Paulson was referring to, there’s only one.

Or how about on September 25th, when the incompetent President Bush had a few comments of his own to soothe the jittery markets.

Bush Warns of Danger:
WASHINGTON - President Bush said Wednesday that lawmakers risk a cascade of wiped-out retirement savings, rising home foreclosures, lost jobs and closed businesses if they fail to act on a massive financial rescue plan. "Our entire economy is in danger," he said. Without immediate action by Congress, America could slip into a financial panic and a distressing scenario would unfold,"

Speculators needn't speculate which America Bush was referring to. But was he afraid his bail out bill might fail? Ever since Paulson and Bush opened up their big mouths, the DOW lost 2,500 points, 401k’s lost over two trillion dollars and it could take years before those losses are recouped. Yes indeed, some lies are worse than others.

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Also on the editorial page of the Sunday Messenger was an article written by Richard Rahn, a senior fellow at the Cato Institute, he writes.....

Who really caused financial meltdown?:
"Following the stock market collapse of 1929, the Hoover Administration tried to spend its way out of Great Depression, increasing federal spending by 47 percent between 1929 and 1932..........

Just a week earlier, Rep. Paul Ryan, who we've been repeatedly reminded by his Bail-Out defenders that he holds a bachelors degree in economics and political science had this to say.

Wall Street Journal Excerpt:
"This is a Herbert Hoover moment, where he sat by and let a Wall Street crash turn into a Great Depression . . . There are times when free-markets stop and rational thinking goes out the window. It then isn't enough to be a laissez-faire conservative and let Rome burn . . ." — Rep.Paul Ryan

One says Hoover did too much - the other said Hoover didn't do enough. But the best blurp from Ryan is perhaps his self-describing "laissez-faire conservative." Now that's a good one.