In response to criticism from opponents seeking to defeat him in the Aug. 24 Republican primary, the four-term senator says he was misled by then-Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke. McCain said the pair assured him that the $700 billion Troubled Asset Relief Program would focus on what was seen as the cause of the financial crisis, the housing meltdown.
"Obviously, that didn't happen," McCain said in a meeting Thursday with The Republic's Editorial Board, recounting his decision-making during the critical initial days of the fiscal crisis. "They decided to stabilize the Wall Street institutions, bail out (insurance giant) AIG, bail out Chrysler, bail out General Motors. . . . What they figured was that if they stabilized Wall Street - I guess it was trickle-down economics - that therefore Main Street would be fine."
But McCain stopped short of calling the TARP a mistake.
"Something had to be done because the world's financial system was on the verge of collapse," he said. "Any economist, liberal or conservative, would agree with that. The action they took, I don't agree with."
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Wouldn't have thought I'd agree with McCain on anything, but I do think a few 100 grand of bail-out money coulda been directed to therapy for Wall Street.
Being compelled to keep a close watch over a relatively small share package over the last couple of years I've come to liken Wall Street and all stock markets to a mob of sheep. (Needed to check Wall Street because the Oz sharemarket choses to worship Wall Street: no economic logic to that, but there it is.)
The mob wants to get to the juicy feed at the top of the hill. The sun goes behind a cloud and the mob rushes downhill in a panic, gradually gathering itself after the hysteria and starting back up the hill. This cycle goes on and on. Someone needs to ask Wall Street what the hell is the matter with 'em!
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