As I discussed earlier the administration went to great pains to assure everyone that the Bear Sternes collapse was the last manifestation of the our financial problems, we had hit bottom. The problem was solved and we were in economic recovery, mission accomplished. This theme was picked up by McCain who repeated at least weekly that the crisis was over and the economy was basically solid. We hear references to whining about the economy from McCain’s camp.
Apparently American financiers inexcusably believed the assurances of these people who are ideologically committed to making them. One report: “The whole thing is a mess,” said Kelli Hill, Portfolio Manager at Ashfield Capital Partners. “When Bear Stearns collapsed, everyone thought that was the capitulation, but it wasn’t. It’s ongoing.”
The easy assurances we have been getting since spring were utterly false and certainly this had to be known at the time, as a collapse of this magnitude does not happen overnight. This is strategy of trying to achieve immediate public relations success has contributed to the depth of the problem by seriously eroding confidence in our financial system.
I can understand McCain’s short term interest in doing this: he wants to get elected. As we have had to ask about Bush, we must ask ourselves about McCane whether he consciously sacrificed long terms goals for the short term interest in getting elected, or whether he was just ignorant of things.