Occident Prone

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Posts Tagged ‘Recession’

Don’t misunderestimate the recession

Posted by occidentprone on September 25, 2008

George W Bush grasps the seriousness of the financial crisis crunching the globe.

“We are in the midst of a serious financial crisis,” he said before hosting unprecedented crisis talks. “Our entire economy is in danger.” (Source: The Australian)

On ABC:

“There has been a widespread loss of confidence and major sectors of America’s financial system are at risk of shutting down,” Mr Bush told the nation from the White House, using some of the bleakest language of the crisis so far.

“The government’s top economic experts warn that without immediate action by Congress, America could slip into a financial panic and a distressing scenario would unfold,” Mr Bush said, in a rare televised appearance.

“With the situation becoming more precarious by the day, I faced a choice – to step in with dramatic government action, or to stand back and allow the irresponsible actions of some to undermine the financial security of all,” he said.

Mr Bush – finally taking a front and centre role in crisis – listed the prospect that more banks could fail and the possibility the US economy could be driven into recession as more reasons that the massive rescue must be approved.

He punched home the message by referring to the impact such a scenario would have on the lives of ordinary Americans and acknowledging the validity , saying that while tens of thousands of people had have lost their homes.

Acknowledging deep American anger that such huge sums of money – amounting to five per cent of American GDP – are being contemplated for those who created the financial strife in the first place, Mr Bush said that nevertheless, not acting now would cost Americans much more later.

Bush’s heir hopeful, John McCain has suspended his election campaign with all the gravity the Republican war veteran can muster.

His opponent Barack Obama says this is the time presidential candidates (you know, those wanting to be President of the United States of America) should start talking about the economy.

McCain is backed into a corner with Sarah Palin as his running mate. She has shown zero capacity for original, analytical thought and between the pair of them, they seem to have trouble pronouncing economy, for all they have avoided the topic.

I have avoided discussing the American campaign as my blog is predominantly about West Australian, and to a lesser degree Australian, current affairs but as the characters develop more and the financial crisis threatens to engulf all of us, I’m wading in. Since late 2006, I have listened to podcasts from Slate magazine and The New Yorker, so that they have become a weekly serial of heroes and villains and jesters all culminating in a series finale in November. (Although if I hear the word ‘narrative’ to describe a current affairs event one more time I’ll scream – and that means you too Crikey crew.)

So I’m trying to draw some meaningful lesson from across the Pacific that we can apply here. And my main concern is this: Please let’s never get in the situation they have in America where a VP candidate (Palin) is allowed to build a cult following without facing questions from the press. No person running for any office, let alone high office, should be unaccountable – BEFORE THEY’RE EVEN ELECTED.

We saw a little of the cult of personality in the Kevin O7 election last year and our leaders face off first as characters, then politicians with policies (think Nelson v Turnbull last week and Buswell for much of this year). But to allow a candidate escape questioning and scrutiny – from reporters or bloggers or voters or anyone – is totally insane. You get what you deserve if you let this happen.

Back to McCain. Slate’s John Dickerson had this to say:

John McCain has launched his second Hail Mary pass in a month. On Wednesday he called for a suspension of the presidential campaign—no events, no ads, and no debate Friday—so that he and Barack Obama can head to Washington to forge a bipartisan solution. Even more than his selection of Sarah Palin as running mate, this gambit feels like a wild improvisation someone in the McCain team mapped out on his chest: OK, you run to the fire hydrant, cut left, and then when he gets to the Buick, John, you heave it.

Dickerson might overuse the word narrative but he knows how to put politics into language we understand.

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