After months of boring billion-dollar bailouts, the Change in Washington will usher in an exciting new time of the trillion for the incoming Congress and Administration:
*Cost estimates of the Obama stimulus plan for the economy are now $1 trillion over two years.
*Politicians will be under pressure to stop the steep drop in the value of American homes, now estimated to have fallen by $2 trillion this year.
*The new people at Treasury and Congressional oversight committees will be busy trying to find out what happened to an estimated $2 trillion shoveled out to banks and other financial houses in the past months. (Bloomberg News is suing under the Freedom of Information Act, but government agencies won't say.)
*When they get a closer look at the books, the Obama people may finally see if the Iraq war cost us only $1 or $2 trillion, as the Congressional Budget Office figures, or closer to the $4 trillion and counting that Nobel economist Joseph Stieglitz has been calculating.
At this rate, it will soon be time to update the folksy wisdom of the 1960s Republican Senate Leader Everett Dirksen: "A trillion here, a trillion there, and pretty soon you're talking about real money."
Showing posts with label Everett Dirksen. Show all posts
Showing posts with label Everett Dirksen. Show all posts
Monday, December 15, 2008
Sunday, September 28, 2008
The Money Pit and Cat in the Well
After pulling an all-nighter, the low-approval gang in Washington this morning will give us their new, improved version of the $700 billion gamble nobody understands but practically all are sure is needed to keep the sky from falling.
The 1980s Tom Hanks movie, "The Money Pit," comes to mind as Congress and the Administration enthuse over the financial structure we're buying with a $250 million down payment that may or may not stand up until their successors move in next January.
House Speaker Nancy Pelosi congratulates the negotiators for "the great work they have done" to "insulate Main Street and everyday Americans from the crisis on Wall Street” while Treasury Secretary Henry Paulson gets up off his knees to celebrate "a deal which will work and be effective in the marketplace.”
But as the happy couple prepare for the Housewarming, the grumpy former tenant Newt Gingrich stands outside bitching that "it’s probably impossible, without the president getting a new secretary of the treasury, to get to a good deal...We’re taking an immediate tummy ache, and we’re in danger of turning it into cancer.”
So much for the mixed metaphors, but perhaps the most apt commentary might be that of a voice from the past, the 1960s Senate Leader Everett Dirksen, who may or may not have said, "A billion here, a billion there and pretty soon you're talking about real money."
Dirksen had all kinds of folksy anecdotes to warn about wild-eyed government spending, including the one about the schoolboy asked to figure out how long it would take for a cat that had fallen into a well 100 feet deep to get out if it climbed up one foot and then fell back two feet.
After reams of calculations, the answer was, "If you give me another 30 minutes, I'm pretty sure I can land that cat in hell."
Dirksen is long gone, but he may have a good sense of direction about where Washington spending was heading.
The 1980s Tom Hanks movie, "The Money Pit," comes to mind as Congress and the Administration enthuse over the financial structure we're buying with a $250 million down payment that may or may not stand up until their successors move in next January.
House Speaker Nancy Pelosi congratulates the negotiators for "the great work they have done" to "insulate Main Street and everyday Americans from the crisis on Wall Street” while Treasury Secretary Henry Paulson gets up off his knees to celebrate "a deal which will work and be effective in the marketplace.”
But as the happy couple prepare for the Housewarming, the grumpy former tenant Newt Gingrich stands outside bitching that "it’s probably impossible, without the president getting a new secretary of the treasury, to get to a good deal...We’re taking an immediate tummy ache, and we’re in danger of turning it into cancer.”
So much for the mixed metaphors, but perhaps the most apt commentary might be that of a voice from the past, the 1960s Senate Leader Everett Dirksen, who may or may not have said, "A billion here, a billion there and pretty soon you're talking about real money."
Dirksen had all kinds of folksy anecdotes to warn about wild-eyed government spending, including the one about the schoolboy asked to figure out how long it would take for a cat that had fallen into a well 100 feet deep to get out if it climbed up one foot and then fell back two feet.
After reams of calculations, the answer was, "If you give me another 30 minutes, I'm pretty sure I can land that cat in hell."
Dirksen is long gone, but he may have a good sense of direction about where Washington spending was heading.
Monday, March 17, 2008
A Trillion Here, a Trillion There
A publisher I knew once proposed a picture book, "They Must Know What They're Doing or They Wouldn't Be Where They Are," to show the captain of the Titanic, the designers of the Edsel, LBJ running the War in Viet Nam and other overseers of spectacular 20th century blunders.
The Bush Administration now rates a sequel all its own for being in charge of two cataclysms, in the Middle East and here at home.
As Bear Stearns, the poster boy for Wall Street greed, gets gobbled up with the help of taxpayer money, Paul Krugman today asks, "When the feds do bail out the financial system, what will they do to ensure that they aren’t also bailing out the people who got us into this mess?"
Not much is the answer, he points out, citing "false beliefs in the private sector" that "led to an epidemic of bad lending" and how "false beliefs in the political arena --the belief of Alan Greenspan and his friends in the Bush administration that the market is always right and regulation always a bad thing--led Washington to ignore the warning signs."
Now even the temple of free enterprise, Rupert Murdoch's Wall Street Journal, is yelling "Uncle," editorially calling for a "more aggressive, and pre-emptive, regulatory role for the Fed...to restore its monetary credibility, or today's panic could become tomorrow's crash."
In assessing the cost of Iraq and the financial meltdown here, Washington is going to have update Everett Dirksen's old maxim, "A billion here, a billion there, and pretty soon you're talking about real money." Just add the zeroes and pray for some real brains and leadership in the White House next year.
The Bush Administration now rates a sequel all its own for being in charge of two cataclysms, in the Middle East and here at home.
As Bear Stearns, the poster boy for Wall Street greed, gets gobbled up with the help of taxpayer money, Paul Krugman today asks, "When the feds do bail out the financial system, what will they do to ensure that they aren’t also bailing out the people who got us into this mess?"
Not much is the answer, he points out, citing "false beliefs in the private sector" that "led to an epidemic of bad lending" and how "false beliefs in the political arena --the belief of Alan Greenspan and his friends in the Bush administration that the market is always right and regulation always a bad thing--led Washington to ignore the warning signs."
Now even the temple of free enterprise, Rupert Murdoch's Wall Street Journal, is yelling "Uncle," editorially calling for a "more aggressive, and pre-emptive, regulatory role for the Fed...to restore its monetary credibility, or today's panic could become tomorrow's crash."
In assessing the cost of Iraq and the financial meltdown here, Washington is going to have update Everett Dirksen's old maxim, "A billion here, a billion there, and pretty soon you're talking about real money." Just add the zeroes and pray for some real brains and leadership in the White House next year.
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