By David L. Brown
The financial “meltdown” that is taking place is very strange in several ways. For one, why now? Why just now as the Presidential campaign enters its critical last few weeks? I would hate to think that Sec. Paulson and Fed Chairman Bernanke pulled all this off just to try to swing the election one way or another. I am sure they did not. But still, the timing is curious so I think we might look further. Who would benefit?
Let’s review what is really happening. There have been runs on banks, at least one of which was triggered by unwise statements by the senior Senator from New York. Twelve days after Sen. Schumer wrote a letter to bank regulators suggesting that the IndyMac bank might be on shaky ground, a letter that he then made public, a run of withdrawals forced the bank to be shut down by the government. According to a report on the National Public Radio web site, here is what happened:
In the two weeks after Schumer’s warning, anxious IndyMac depositors withdrew $1.3 billion. Regulators suggested the senator was partly to blame for the bank’s collapse.
“In effect, the deposit run sparked by the senator’s letter pushed IndyMac over the edge,” said Office of Thrift Supervision Director John Reich after the bank was seized. “Would the institution have failed without the deposit run? We’ll never know the answer to that question. It’s true that IndyMac was already a troubled institution in precarious condition. The deposit run precluded the possibility of IndyMac recovering from this condition.”
That all happened back in July, after the primaries had determined that Obama and McCain would be the candidates for President. So we have a Democratic Senator “partly to blame” for a bank collapse just as the campaign started to gain momentum. Coincidence? Perhaps. But consider that the left had been crying poverty about our economy for months, and with obvious political motivation.
The failure of one bank would have been bad enough, but the collapse of IndyMac started a train in motion that led investors and depositors to become increasingly wary. Meanwhile, the left with the enthusiastic support of a liberal and perhaps even unbalanced press revved up their scare tactics, acting like the witches in MacBeth, toiling over their cauldron trying to stir up economic trouble for our nation. Boil, boil, boil — you couldn’t turn on a TV or radio without hearing some motormouth declaring that we are “Dooooomed, Doomed I say,” and most usually without any particular reasons. For months the left has been claiming that we are in a recession, nay, a depression, nay again, a New Great Depression, the Depression to End All Depressions. The sky is falling!
And meanwhile, the American economy was still growing, unemployment was at reasonable levels, our trade balance was beginning to swing in our favor. There was no sound reason for Chicken Little and all his cronies to be shouting warnings from the rooftops.
No sound reason, but I can see an unsound one, and that is the possibility that it was all part of a concerted program aimed at putting a Democrat in the White House for the next four years. Could that be? Yeah, I think so. The behavior of the looney left has been so consistently radical and insane that one could believe almost anything of them. All one needs to do is look at the barrage of manufactured lies, innuendos, and vitriol that has been hurled at Sarah Palin.
Well, if it was their goal to scare Americans into voting for Obama, perhaps they didn’t really mean to burn the whole house down. After all, they wouldn’t want to drive the nation into total collapse. Or would they? I don’t know the answer to that, but the fact is that might be what they have done. The continued drumbeat of negative claims about our economy, the war, how much foreigners hate America, and everything else may finally have shaken people up, shaken them up enough that they reacted to rumors such as Chuck Schumer’s conveniently timed letter by drawing out more than a billion dollars from IndyMac, and others to begin quietly taking money away from other institutions and putting it into a sock.