It's About Coalitions, Not Purity, Part Forty-Eight

The Chickens Come Home To Roost, But It's Too Hot In The Hen House ... The Financial Meltdown, Part 5

While the nominations and political party conventions took place, Americans continued to endure record high oil and gasoline prices, along with the news of mounting numbers of foreclosures in the housing market. Believe it or not (offered sarcastically), some people better versed in economics actually began to ask questions in print and on television, as to "who" was absorbing the losses on what was becoming a staggering number of foreclosures. Put simply, if I loaned you the money to buy your house, and then you can't meet the payments, "it ain't Aunt Mary in Tuscaloosa" who is losing the money, it's me! So those in the know about the financial system began focusing on the banks, and then on the whole system in the mortgage industry, which was very complex, and thus beyond the scope of this article. It turned out, the system was rotten with bad mortgages, as many individuals, government entities and businesses had invested in mortgages. DAMN! Aunt Mary in Tuscaloosa did lose money! She held investments in a bank and an insurance company.

In mid September 2008, Lehman Brothers, a large Wall Street investment bank in business for more than 150 years, was next to suffer the consequences of irresponsible capitalism. After serious declines in its stock price and announced layoffs of personnel, clients abandoned the bank in droves, withdrawing their money and assets almost instantly. The bank announced it would file for bankruptcy, and the DOW dropped 500 points in one day, with further staggering losses to follow. The Fed did not intervene, thus giving the "free marketers" their wish. With Lehman's collapse, the situation became so serious, the Bush administration, that bulwark of "free market capitalism," having oft essentially said to American economic problems, "we can't do anything about anything, because its a free market economy," announced, along with the support of the Fed, that they needed a special fund of $700 billion (with a "b") to shore up the financial system or that the country faced a new DEPRESSION. Fear spread, as the extent of the mortgage crapola became more obvious, and that it was not just limited to a couple of financial institutions. Further, the greed and corruption had many accomplices throughout the "free market" system. You can't regulate 'em, or it ain't freedom (excuse me, third grade English teachers). The thing was, getting anywhere near accurate information of the financial condition of many institutions was difficult, because they were fearful of releasing how bad their individual situations truly were, or of seeking help from the Federal Reserve,* as that could bring about what had happened to Lehman Brothers, a fast collapse, as customers withdrew their money in just hours.

On the political front, the McCain campaign, struggling with its ties to the unpopularity of President George W. Bush, and with increasing discontent over the war in Iraq and high gasoline prices, now faced an even bigger challenge, as some Democrats, independents, and probably even some Republicans, even though at least some, likely harboring some bigotry toward Barack Obama over his racial background and/or his atypical name, overcame those feelings out of fear for their own well being and decided to support Obama. There were, however, opposite reactions, as some longtime Democrats, unable to overcome their bigotry, or outright racism, chose to support McCain. At the time, a guy I knew, a life long Democrat, so full of hatred toward black Americans, backed McCain. He turned against Democrats with a vengeance. I'm not certain of this, but I believe since that time, he became a Republican. So the coalitions were jumbled a bit, but with Obama and Democrats benefiting more than McCain and Republicans; at least, in the overall political situation, although not in specific states or certain local communities. The 2008 election showed our good side and our bad side, simultaneously, as many Americans rose above race and bigotry, but the election, and Obama's background, aroused some of the basest fears and hatreds in other Americans. 

John McCain has long had a "maverick streak," and an admiration for former progressive (for his times) Republican, President Teddy Roosevelt. In a country increasingly divided over politics, often driven, in my opinion, by radio and television personalities promoting division over unity, candidate John McCain in October 2008 told supporters at a rally, one of whom had commented that he was "scared" of an Obama presidency, and another who had claimed Obama was "an Arab," with all the racism and bigotry that was meant to convey to Americans about terrorists, that Obama "is a decent man," and that, "you don't have to be scared of him being president," and further, "he's not (an Arab.") ** I guess I'm showing my own cynicism, but I was PLEASANTLY stunned to see McCain rise above the nastiness of politics and choose to stand up for his opponent.

The stock markets plunged and so did the price of oil, even after we had been told what an oil "shortage" there was; thus, justifying the surge in price to $140 to $150 a barrel. Within weeks the price had plummeted to about $30 a barrel. Ah, see Sir Walter Scott quote in note *, below.

Next, the results of Election 2008 ...

* The reason financial institutions feared going to the Federal Reserve, was that it would then be an admission of financial trouble, and while in "normal times," logic by investors and customers might not have sparked a stock selloff and customer withdrawals, as the institution was getting help to stabilize, with the tense situation in late 2008, logic was something not in supply, as lack of transparency over financial matters had made EVERYONE distrustful, including distrust between banks and other financial institutions. "O what a tangled web we weave, when first we practice to deceive." (quoted from Sir Walter Scott, and technically it was/is "practise" in British English) 

** McCain was not acting as if being an Arab were something to be ashamed of, but rather, he was simply pointing out the error stated by the lady. There were rumors circulating about Obama not being an American and about him being a secret Muslim (again, stoking fears by Americans of terrorism) and that he was associating with terrorists.  

WORD HISTORY:
Plunge-Like its relative "plumb" (also, "plumber"), the origins of this word are uncertain, although some believe it is from a non Indo European language in the Mediterranean area, as both Latin and Greek have forms of the word. It traces back to Latin "plumbum," which meant "lead" (the metal). This produced the Latin verb, "plumbicare," which meant, "to throw/toss lead," "seemingly" in reference to "tossing lead weighted fishing nets or lines into the water." Old French, a Latin-based language, took the word as "plongier," meaning, "to dive or sink into water." English borrowed the word, as "plungen," in the second half of the 1300s, almost certainly under the influence of the Norman spelling, or what came to be the Norman spelling, "plungier." ^ Also by that time, the meaning had broadened beyond "diving or sinking into water," to more figurative senses, like, "diving into work or into a particular task;" also, "to commit to some idea or cause." The noun was derived from the verb, with the meaning, "a dive into water," or, "an unexpected forceful fall downward" ("I tripped and plunged down the hillside").    

^ It is unclear to me whether "plungier" was the spelling brought to England by the Normans. It's important to remember, the Norman dialect differed somewhat from the French of Paris or other parts of France, so spelling and pronunciation variations were common.