In this appearance on Real Time with Bill Maher this weekend, New York Times Columnist and Economist Paul Krugman gives his view of the current Stock Market Crisis, and Bailout. And just when I was starting to feel a little confidence again, he yanks the rug out from under the entire country...
First Who's to Blame?
Krugman: I blame Alan Greenspan. But this is the Administration philosophy coming to full fruit. We've been headed this way for 20 years, and hey, we hit the wall but good this time.
Slamming into walls, eh? Not exactly a pretty image, but wait - it gets worse.
Stock Market Socialism Anyone?
Krugman: When I heard news about this plan my first thought was "Kommisar Paulson is seizing the means of Production". This is the most socialist move we've seen by any administration in God's knows how long, and it's coming from the Bush Administration
But then of course, Bush has always been a socialist when it comes to his cronies and lobbyist buddies in the financial markets on Wall Street. He only believes in darwinistic capitalism when it comes to Main Street economics, when it comes to your paycheck, your health care and your pension. All of which have just been completely fracked to the tune of nearly a $Trillion in additional U.S. Debt.
And maybe more...
This is when he really got to me.
Krugman: Look, this is really scary. This is really bad, This Could be 1931 - The collapse of EVERYTHING, so you have to do something big. There are no athiests in foxholes and no liberterians in a financial crisis. When things are really bad, and people are at all rational - well,thank God we've got Hank Paulson as President - we get a response.
Maher: Well, I've been listening to financial experts, and no offense, but it seems like they don't know what's going on.
Krugman: Yeah, right look. Anybody who knew what was going on would have been in a Bomb Shelter by now. This is panicky. Quite Seriously, Like, I was looking at the numbers on Wednesday and I thought "The World is coming to an End", and apparently the people at the Treasury Dept. thought the same thing. This was - boy - this was the worst thing I've ever seen.
Ok, it's bad - really bad. But it's over - right? OVER. Done? Finito? Our jobs, our homes and our savings are all safe now?
Er, Not so much.
Maher: So, the market's rebounded. What's your prediction for next week, and the week after that - are we out of the woods or is everything just beginning?
Krugman: We're probably just at the beginning.
Maher: Aw, geez. [You know the fan has met the shitzilla when BILL MAHER goes "Aw, Geez!!!", which is short for "Oh, Jesus" when he doesn't believe in Jesus!"]
Krugman: We probably won't have everything melt down in two days, which could've happened. The best scenario is that the economy's probably going to get worse for another year, and the housing market is going to get worse for another two years. This is not the solution, this just avoiding disaster!
It's at this point that Maher says something that I've been saying for years and needs to be repeated as loudly as possible. America doesn't make anything anymore - except debt!. That is our chief exportable product - not something you can use, no - invisible money.
Maher: To me I think, from a layman's point of view for the last 20-30 years, America doesn't make anything. We used to manufacture stuff, cars and stuff. Arabs and Colombians drill oil, Indians make code for computers. China makes DVD's - they make them out of pigshit and mercury - but they make something. Y'know what America makes? Debt. The Financial Services industry just makes debt, it's really pushing money around on computers screens.
Krugman: Well, your right, and in way we actually do have fair trade with China. They sell us poisoned toys and tainted sea food and we sell them fraudulent securities.
Ba Dump - Ching!
Wow. oh wow. That shit is funny because it's just plain true, isn't it? Our entire economy crumbling because it's built on a pack of lies. On promises we have no possible way of keeping. And we thought we were getting the short end of the trade stick with the anti-freeze toothpaste, but what's China gonna do with all that bogus debt? Send it back?
Time to invest in Gold, or maybe a really thick mattress.
Krugman: Everything did eventually come back after 1933. but really, we need a better Government than what we've got.
Amen to that brother, Amen.