It's My Party": Is John McCain Embracing Socialism?
Posted: Friday, October 10, 2008
by Walter Rhett
Charleston Perlo
Weekend note from the old school: The misery of life used to be reserved as a part of love. When I was young, Motown took the heart's sorrow and raised the angst of youth to high art. That's why I was surprised listening, sipping Nguvu (an African coffee from Kenya), to Brenda Holloway's 1965 hit that the words she was singing applied to the economy:
- "What are you going to do on the day when I turn my head and walk away.
- What are you going to say to your friends when the talk around town begins . . .
- They don't know how much you lied, they don't know how much I cried;
- You're a real Dr. Jekyll and Mr. Hyde."
But what peaked Wells Fargo's enthusiasm was the price. Wells Fargo is paying $5.42 a share for Wachovia's 442 billion in deposits. That's 10 cents on the dollar for a bank that traded at a high of $51.41- in the last 52 weeks . It's well above Wachovia's recent closing share price of $3.60.
These shotgun relationships began a few months ago when Bear, Sterns, suffering a liquidity crisis, was sold for less than the land value of its New York headquarters. Since then, the shaky balance sheets of financial institutions have made easy pickings for other suitors--including the US government. The US government? Unfortunately, yes. Without hesitation or notice, the Treasury set up a financial fiefdom, backing purchases of private companies, buying private assets, making loans to private companies, offering new interest rates through the Federal Reserve.
When government intervenes, owns, controls, and seizes assets, and determines their allocation, that's socialism. In his stump speeches, John McCain patently ignores this dangerous precedent and doesn't seem to get the new reality. America's number one freedom fighter is apparently unwilling to step up and take on his own party. under his party's leadership, Henry Paulson is the new, unelected economic czar, doling out and divying up private assets, changing interest rates through the Federsal Reserve, buying and selling private companies, backing private deals, under his own authority, without oversight. Each weekend, new deals involving the government and private compaines change the global economic landscape. Does John McCain fly to Washington to protect or preserve our economic freedom? Or did he fly to Washing to lock arms with other Republicans and support the concentration of power in Paulson's hands?
Even McCain now proposes the Treasury buy up private mortgages, increasing the shift to socialism. Government purchase, however alluring a panacea for homeowners, diminishes the role of the private market. That, my friends, is dangerous. And McCain's proposal doesn't even provide assurances that the monies paid to companies for the mortgages will be used to make new loans and add liquidity to the market. Many of the companies will simply sit on the cash--and the markets will stay seized. Ever vigilant of foreign enemies, McCain utterly fails to see the irreversible steps this nation is taking by involving government in every financial transaction. From consumer to commerical and international transactions, the government is entering uncharted waters without a strategic plan, carefully weighed options, an exit, or an assessment of consequences. Its the Iraq intervention again, played out in the financial markets, with the same potential for a quagmire. How can the first patriot ignore the loss of all he fought to defend? Or is he in over his head? Where is his vaulted leadership? Is he missing in action, again?
Weekend deals are changing the financial landscape. McCain's only saving grace is that Obama is equally as quiet about the dangers lurking within the current crisis. So this Friday, when you are listening to song to get in the mood for a fun weekend, remember the lyrics might apply to the real world.
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Top-level comments on this article: (3 total)hi walter,this was a well written, interesing and understandable article-politics isn't always so easy for some of us to follow, but i understood what you were saying.i can only pray that God gives us a break,my best regards,sue
I believe both candidates know more than they are saying. I don't believe the bailout should be happening, at least not in the proportions and beneficiaries that it includes. I do think things will continue to deteriorate - but eventually get better. Rose colored glasses, maybe?Good article, Walter. Welcome to SearchWarp.
Hi Walter! Although I suppose I'm a bit passionate about his whole situation, you're style is great and I applaud you for a strong, good article -- looking forward in seeing more articles from you!
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