Obama defeated the Republicans and got his recovery bill. Hopefully - history will see it as the turning point, but its hard not to be scared silly that it won't work.
I have this "calm before the storm" feeling about Obama's first major legislative victory - there is a real possibility that the Obama plan is not going to get banks lending again and we are really screwed.
I just wish I didn't feel like we're the young couple whose car broke down at midnight during a storm near the old creepy farmhouse, slowly climbing the cellar stairs to assess the damage after the opening skirmish with the monsters. Its suddenly quiet out there - too quiet.
At this moment the Republicans are in retreat and praying - as Limbaugh admitted- that the recovery effort fails. I guess he dropped that whole patriotism in time of crisis thing.
As we slowly open the cellar door and poke our heads out we can see the retreating creatures off in the distance - limping away over the horizon - having lost round one - shuffling and crawling back to the graveyard or swamp. We can hear them howling back at us over their shoulders -
"We will be back!" "It will never work"
"Its a Christmas tree full of Democratic pork"
"You have doomed future generations with trillions of debt for nothing"
The Republicans know that whats at stake here is nothing less their entire identity built on decades of post Reagan philosophy about reducing government and cutting taxes and redistributing wealth to rich people - as the answer to everything.
In one piece of legislation Obama and Congress have essentially committed the United States treasury to a 21st century emergency triage version of Roosevelt's New Deal and Johnsons Great Society - forgive me for this metaphor but if the Republicans are Dracula this legislation is like holding a crucifix in front of their noses.
The problem is that spending all this money might not work, not because Republicans are right - [Remember these one trick ponies wanted to put Social Security funds in the stock market] but because this massive cash infusion is not solving the problem of banks not lending.
If banks dont start lending the private economy and the world economy will remain stalled - public works spending will go along way to ease the pain but is it enough to generate a lasting jump start?
The US banking system is on life support. This perfect storm crash of the stock and real estate markets exposed a house of cards - ledger sheets kept in balance with bullshit inflated real estate appraisals and a mortgage backed securities ponzi scheme built on the same smoke and mirrors foundation.
Thats why the markets tanked minutes after Treasury Secretary Timothy Geithner's anxiously anticipated speech in which he offerred no details of how they were going to deal with the dead assets -It didnt help that Obama's gladiator smarty pants turned out to have the charisma of an apprentice undertaker.
A piece in last Sunday's Business Section warned - "There is no sense throwing funds at zombie banks"
"Before Stress Testing Banks, Find a Pulse"
Gretchen Morgenson, NYT Sunday Business Section page one 2/15/09
The papers are full of mounting job losses. Noone knows what will happen next-
- and we are low on popcorn.
