Think about this. Goldman Sachs and Morgan Stanley are the only two major investment banking firms left standing and Goldman reported a 71% third quarter drop in profit, its worst since going public. Lehman is in flight from creditors, cowering in bankruptcy, Merrill Lynch and Bear Sterns are gone. Alan Greenspan has never in his life seen anything like this and calls it a once in a hundred year event. The federal reserve just agreed to bailout AIG, (a mega insurance company of all things) and the federal government is madly scrambling to avoid a systemic collapse.
The economies of other nations seem to be reacting dramatically to this news. Part of the problem may be that after the Bear Sterns collapse last spring the Bush administration sent teams of economic advisers informing people around the world reassuring foreign leaders that the problem had been solved. This may later be known as Bush’s “Mission Accomplished” statement about the economy.
McCain and Palin do not seem to see a problem, although after apparently listening to Obama Monday, McCain is beginning to talk about there being a serious difficulty.
Try to imagine three months from now. Do you want Barack Obama and Joe Biden sitting down to address the problem or John McCain and Sarah Palin? There is something profoundly Bush-like in the Republican candidates’ premature declaration of victory in war, their confusion of military and foreign policy, and in their failure to anticipate or even discern a domestic crisis.