Tag Archive | "bail out"

Bailout deal breaks down; Bernanke back to Capitol

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Urgent efforts to lash together a $700 billion rescue plan for the national economy broke apart Thursday night, hours after key lawmakers had declared they had reached a deal.Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke sped to Capitol Hill to try to revive or rework the proposal that the administration says must be quickly approved by Congress to stave off economic disaster.
Congressional leaders were to meet with the economic chiefs into the night.

Obama: In town, working out

Obama, headphones, baseball hat, hitting the gym. Spotted working out this a.m. at the Washington Sports Club, near Adams Morgan/Kalorama, from 7:30a – 8:20a.

Stay tuned for more gym/Obama news…

America’s Resilient Economic System

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While Lehman’s bankruptcy, Merrill’s sale and AIG’s defacto take-over by the government are indeed worrisome (and questionable policy), the sky isn’t falling for the American economy at-large. The financial markets may be reeling, but it’s always the worst when you’re smack in the middle of things . . . a little perspective is needed.

When I arrived at Best Buy this morning at 9:58 A.M. there were nearly 20 people standing in line, all ready to do business with them. I say this to remind all of us that ours is a resilient economic system. Our free enterprise system has proven able to withstand about anything – years of corporate mismanagement, political graft, pork and theft, and lax regulatory oversight by the bureaucrats. All that resulted in a speculative bubble – in many sectors – and you just heard the POP.

Frankly, there are a bunch of advanced degree holding geniuses running things in Washington and on Wall Street who need a good spanking. We were told they were smarter than the rest of us. How’d that work out? We ought to demand they give us back some of that $50 million CEO salary shareholders forked over. Let’s change the lifetime perks we give the porksters in Washington. We sent in a new group two years ago to run Congress. They’re worse than the others. A 9% job approval rating for them. Accurate and appropriate, but disgusting. Send’em home. If we’re going to change the guard, let’s start there.

The media is creating inflammatory, “chicken-little” headlines. Porkster-politicians are pressuring the regulators. The regulators will over-react and tighten the screws on the banks, classifying more of their loans. The banks will then squeeze their borrowers, hurting their best customers the most. The damage will be twice as bad as it would have been had capable management and thoughtful policy been in place in the first place. Ugh.

The events of the past few weeks suggest to me that we’re entering a New Era in our society — one where the venerable old names don’t really matter that much anymore.

Some will say it will be a “challenging” two years. Yet people will continue lining up at Best Buy. I don’t have a crystal ball. We’ve been through tough times before. For the new, for the nimble, for the smart, for the swift, for the courageous, for the wise, for the entrepreneurs of the world we may be entering what will eventually be known as the best of times. While everyone pulls back, I will push ahead and thrive, not just survive. Please join me.

Larry Parman, Attorney and Founder
Parman & Easterday, LLP