June 26, 2008
: Democrat Chuck Schumer leaked a memo questioning
the solvency of IndyMac bank. This memo precipitated a run on IndyMac which led
to its failure. Federal regulators pointedly cited U.S. Sen. Charles Schumer,
D-N.Y., in explaining the bank's failure. "The immediate cause of the closing was
a deposit run that began and continued after the public release of a June 26 letter
to the OTS and the FDIC from Senator Charles Schumer of New York."
This event, coupled with the Lehman Brothers collapse in September, marked the beginning
of the current economic meltdown and provided the ammunition for massive government
intervention in the private market.
Sept. 6, 2008
: Fannie Mae begins its downward spiral, which will end with a
crash in November. This crash was avoidable, as the problems with Fannie Mae and
Freddie Mac were identified in June of 2006, when 15 Republicans on the Senate Banking
Committee introduced legislation
to address the problem. Democrats,
led by Barney Frank, killed the reform efforts.
Sept. 15, 2008
: Obama and McCain are virtually tied in their race
for the presidency. Out of no-where, in the space of less than 2 hours, the Federal
Reserve noticed a tremendous drawdown of money market accounts
in the U.S. to the tune
of $550 billion. Rep. Paul Kanjorski of Pennsylvania said that if authorities
had not closed the banks, $5.5 trillion would have been withdrawn from US banks,
which would have
caused the collapse of the US
within 24 hours.
This seminal event marked the ascendancy of Obama's candidacy, and eventually resulted in
his election as president.
Fast forward to this week. The markets reacted to Obama's
proposal to bail-out mortgages and Senator Christopher Dodd's talk of
Obama continues to stoke the fears of imminent crisis, actually using the word 'crisis'
a total of 26 times in one speech.
Enter George Soros. The
infamous one-worlder, billionaire George Soros adds his voice
to the media doomsayers by opining
that the world financial system has effectively disintegrated, adding that there
is yet no prospect of near-term resolution to the crisis.
Soros said the turbulence is more severe than during the Great Depression, comparing
the current situation to the demise of the Soviet Union.
He may be right. The series
of 'inadvertent errors', deliberate obstruction, political shenanigans, behind the
scenes manipulation of the money markets and non-stop calls for immediate infusions
of taxpayer cash have brought the U.S. to its knees.
With one voice, politicians, economists and 'experts' agree by unspoken consensus
that government is the only solution. No one points out the fact that every
single step taken so far by the government has exacerbated the problem, effectively
bringing America one step closer to centralized government control. Which, coincidentally,
I am not an economist. But I will challenge any expert to dispute the fact that
if President Obama took to the airwaves tomorrow and announced the Bush tax cuts
would be extended and a capital gains tax cut was under consideration, the markets
would immediately turn around.
That no-one is proposing this common sense solution is alarming. That no free market
solutions are even under consideration is more alarming. That no-one is
questioning who was responsible for the Sept. 15 run on money market accounts, or
why the media was silent on it, lends credence to the possibility that our current
economic crisis might not have been the result of a series of random events.
The economic meltdown is undoubtedly responsible for Obama becoming president. It
is also responsible for the current consideration of socialistic solutions, if not
outright socialism. Without a doubt, this crisis has strengthened the Democratic
party. Yet to connect the dots and suggest that this crisis isn't a result of capitalism
gone bad risks branding this author with the title of paranoid conspiracist.
Color me paranoid. Was this current crisis manufactured? I don't know. Does the
possibility exist? You decide.
* Six months later,
Jan 2, 2009, a seven-member group of investors
agreed to buy the remnants of failed lender IndyMac
for $13.9 billion. Other investors included a fund controlled by billionaire George Soros' Fund Management.
Nancy Morgan is a columnist and news editor for
She lives in South Carolina
Article may be reprinted, with the above attribution.