Commentary Magazine


Contentions

Nice Job, Fellas

Even the New York Times can’t avoid the obvious:

Once again, investors are losing confidence in the nation’s beleaguered banks — and, this time, experts say, in Washington’s ever-changing plans to rescue the banks as well.

Despite somber assurances from the White House that the industry is sound, shares of bank companies plunged to new lows Friday on fears that some of the nation’s largest banks, including Citigroup and Bank of America, eventually could be nationalized.

Even though both companies said that was not the case, investors pointed to a seemingly offhand remark by Senator Christopher J. Dodd — to the effect that the administration might assume ownership of certain banks for a short time — as cause for concern.

The Times quotes a former bank regulator: “People are getting spooked… When you have the government coming out and saying that they are not thinking about nationalization, I think it falls on deaf ears.”

In other words, the Obama administration, and specifically the boy genius Treasury Secretary, succeeded in wreaking havoc on the markets in a matter of weeks. It is rather remarkable that they thought they’d spur a recovery by talking down the economy, providing no clarity to investors and financial institutions in dire need of some, and coming up with pork-a-thon “stimulus” bill. One wonders how much wealth has been incinerated (and how long the recession has been prolonged) by a government-induced panic. As one columnist noted:

But the bottom line is this: Obama’s economic plans cannot work with the cooperation of the markets. Falling stock prices mean people and business will continue to cut back on spending, and eventually higher interest rates will slow borrowing due to fear of monstrous deficits.

Apparently it’s not just about campaign rallies and who won the election.



Join the discussion…

Are you a subscriber? Log in to comment »

Not a subscriber? Join the discussion today, subscribe to Commentary »





Welcome to Commentary Magazine.
We hope you enjoy your visit.
As a visitor to our site, you are allowed 8 free articles this month.
This is your first of 8 free articles.

If you are already a digital subscriber, log in here »

Print subscriber? For free access to the website and iPad, register here »

To subscribe, click here to see our subscription offers »

Please note this is an advertisement skip this ad
Clearly, you have a passion for ideas.
Subscribe today for unlimited digital access to the publication that shapes the minds of the people who shape our world.
Get for just
YOU HAVE READ OF 8 FREE ARTICLES THIS MONTH.
FOR JUST
YOU HAVE READ OF 8 FREE ARTICLES THIS MONTH.
FOR JUST
Welcome to Commentary Magazine.
We hope you enjoy your visit.
As a visitor, you are allowed 8 free articles.
This is your first article.
You have read of 8 free articles this month.
YOU HAVE READ 8 OF 8
FREE ARTICLES THIS MONTH.
for full access to
CommentaryMagazine.com
INCLUDES FULL ACCESS TO:
Digital subscriber?
Print subscriber? Get free access »
Call to subscribe: 1-800-829-6270
You can also subscribe
on your computer at
CommentaryMagazine.com.
LOG IN WITH YOUR
COMMENTARY MAGAZINE ID
Don't have a CommentaryMagazine.com log in?
CREATE A COMMENTARY
LOG IN ID
Enter you email address and password below. A confirmation email will be sent to the email address that you provide.