McCain and Palin, Avoiding Issues

It is always tempting to question whether the ‘other side', in this case McCain and his surrogates, exist in some alternate universe that bears little resemblance to the real world and the concerns of real people. Unfortunately, however, it is ordinary Americans who have been thrust into an alternate universe where they are forced to endure the vicissitudes of an ugly campaign season and a downward economic spiral.

Ignoring for the moment the campaign itself, it is worth taking a look at how bizarre the machinations of our financial institutions can be. They are often incomprehensible to the average person, and explanations designed to ease minds and explain trends don't do much to clarify how we ended up where we are today. There's a feeling of helplessness animated by rage in the country. People had at least expected something approaching competence from the people in charge of the nation's financial underpinnings.

Most of the transactions and investment instruments that have played a part in today's financial meltdown are so arcane and complicated they are beyond comprehension for most people, including me. And some practices accepted in accounting circles seem ludicrous to the casual observer. In the ‘80s Silverado debacle, owner Wise bought back from friends, office buildings built with loans he had made them, giving them a profit which they invested in Silverado stock permitting Silverado to increase its "equity." Whether or not the offices were ever rented, the property was carried on the books at the price Wise paid for the building plus the expenses incurred in holding it - - value added. (The Greatest-Ever Bank Robbery, Martin Mayer, Page 15)

And apparently this isn't all that unusual as an accounting procedure. To most of us such tricks of the trade border on lunacy and while they may work if there isn't some dubious  Ponzi Scheme at the core of ventures like Silverado, it isn't hard to see how easily such houses of cards can be made to fall. On the local and personal level, I was told at my bank the other day that I was on the cusp of acquiring a "free checking account" because of the balance I carried - - combining my credit card balance with what was in my checking account. Now in my little mental workshop I think of a checking account balance as a plus and what is owed on a credit card as debt. How silly is that, according to my bank's way of looking at things.

The causes of today's economic distress are argued back and forth along party lines, but Democrats seem to be making a stab at developing better oversight mechanisms for the financial markets. On the other hand, the McCain camp warns against over-regulation, or as Sarah Palin said in her rambling discourse during what was supposed to be a debate, ‘government should just get out of the way' and let market forces do their job. What is terrifying about her remarks and those of John McCain is that they show so little understanding of what market forces actually produce and almost no recognition of how the cost of the war in Iraq relates to the financial fix we're in.

Basically the campaign prefers to avoid any discussion of the country's economic plight  focusing they would have us believe on the future; Sarah Palin berated Joe Biden at their ‘debate' for talking about the past, even if it's the near past and the ongoing present - - you know like that climate change stuff. "There you go again" she said to him at one point, channeling Ronald Reagan from one of her cue cards. John and I are just a couple of mavericks who are all about change and reforming Washington.

But the campaign has chosen her to serve as hatchet mom to convey the message that Obama doesn't see the country the way real patriots do; after all he pals around with radicals who wanted to blow up the Pentagon, even if he was only eight years old at the time and the radical in question seems to have become a pillar of the present-day Chicago community. Her delight in the role of "character assassin" is an unpleasant and rather alarming aspect of her character that tends to validate reports of her vindictive approach to the power of public office in Alaska.

Taking a turn for the worse McCain and Palin say the gloves are coming off which means sucker-punching your opponents - - beats talking about the economy or how cutting taxes in a time of war and huge deficits benefits the country.