Over the past week, I’ve often wondered why the financial crisis has been positioned as a Wall Street problem requiring a Wall Street bailout. There are trickle down effects that impact all Americans. We’re seeing it here in Central Florida. And, talking to some well informed community leaders, we’re going to see even more problems. Businesses already struggling are going to face even more problems. Think about it just from a real estate perspective. Say Developer A was going to build a new high rise. But, thier credit line all of a sudden was greatly diminished — so much so that they’ve decided to delay the project. That means the architects, planners, general contractors, cleaning crews, sales teams and lots more people suddenly don’t have work. Which means they can’t go out to eat as much, have to fire the cleaning lady and won’t shop. Stores won’t be busy, so the kids making minimum wage will be layed off as well. You see where I’m going — it’s a viscious cycle. It may start on Wall Street … but the crisis is quickly finding its way to Main Street.

When speaking about the bailout bill in the Senate this evening, Obama correctly portrayed this as an American Crisis … not just a Wall Street crisis. I hope people will understand that this bailout isn’t just to help protect the rich people. It’s about trying to find a way to stop the bleeding so the American people are protected. From Obama (transcript courtesy of Daily Kos):

When the House of Representatives failed to act on Monday, we saw the single largest decline in the stock market in two decades. Over $1 trillion of wealth was lost by the time the markets closed. And it wasn’t just the wealth a few CEOs or Wall Street executives. The 401(k)s and retirement accounts of millions became smaller. The state pension funds of teachers and government employees lost billions upon billions of dollars. Hard-working Americans who invested their nest egg to watch it grow saw it diminish and in some cases disappear. And while that decline was devastating, the consequences of the credit crisis that caused it will be even worse if we do not act now. We’re in a very dangerous situation where financial institutions across this country are afraid to lend money. And if all that meant was the failure of a few banks in New York, that would be one thing. But that’s not what it means. What it means is, if we don’t act, it will be harder for Americans to get a mortgage for their home or loans they need to buy a car or send their children to college. What it means is that businesses won’t be able to get the loans they need to open a new factory or make payroll for their workers. And if they can’t make payroll on Friday, then workers are laid off on Monday. And if workers are laid off on Monday, then they can’t pay their bills or pay back their loans to somebody else. And it will go on and on and on, rippling through the entire economy. Potentially we could see thousands of businesses close, millions of jobs could be lost, and a long and painful recession could follow. In other words, this is not just a Wall Street crisis, it’s an American crisis.

If last week’s financial mess was crisis enough for McCain to suspend his campagin, what will he do this week? It sounds like this is a bigger crisis — with the bailout failing and no real Plan B on the backburner. Will he suspend his campaign again? Maybe just in time for Palin to skip the Veep debate?

If he doesn’t suspend his campaign this week, what does that say about last week’s suspension? He suspended his campaign as a political trick, or he had good intentions, but — gasp — the stunt polled poorly, so he won’t do it again. Either way, it’s not a “country first” approach.

Last week, Congress was *this close* to having a deal worked out … then John McCain swooped in –crushing all hopes of a bipartisan financial rescue plan. With presidential politics injected into the craziness, the House just defeated the bill. The Dow just dropped another 700 points.

Congressional leadership needs to get their act together. If you didn’t have the votes to pass the legislation, it never should have been brought to the floor. Nancy Pelosi: Get your House in order. Literally.

We need to come  up with a package that stops the bleeding on Wall Street, while protecting the taxpayers so we’re not nationalizing businesses that rightly should be privatized. This whole financial crisis has been positioned poorly from the start. I think the larger point is being missed by the general public. Yes, Wall Street is in crisis mode; however, it’s not just the rich people running financial institutions that will suffer as a result. Here in Central Florida, Westgate Resorts — one of the country’s largest time-share companies — announced that it’s laying off hundreds of workers due to the economic squeeze. This is one of the area’s largest employers — and those employees are about to feel the wrath of Wall Street’s collapse. Instead of billing this as a Wall Street bailout, our leaders should have clearly articulated how this will impact Main Street. It’s not as simple as Wall Street vs. Main Street. The trickle down effects of the crisis will impact Main Street just as severely as the fat cats on Wall Street.

I tend to lean liberal; however, I don’t think the government should do everything for everyone. But, when even Warren Buffet is saying that the government needs to intervene, I think the governement needs to intervene. And, not is a political gamesmanship kind of way. To quote my favorite political movie, “We’ve got serious problems, and we need serious people.”

Talk about political posturing. I thought McCain picking Palin was a political stunt … but his latest move is even more outlandish. As everyone has heard by now, McCain announced that he’s going to suspend his campagin to focus on the economy.

My head is swirling with reactions. A stream of random reactions:

• McCain’s economic plan is Phil Gramm’s economic plan. Isn’t that what led us to this disaster to begin with? Why would we want McCain anywhere near this? According to a February article from Fortune:
  

  McCain’s chief economic adviser - and perhaps his closest political friend - is the ultimate pure play in free market faith, former Texas Senator Phil Gramm. If McCain follows Gramm’s counsel, and most of his current positions are vintage Gramm indeed …

• McCain has admitted the economy isn’t exactly his strong suit. Again, why do we want him putting this plan together? Shouldn’t the best and brightest economic minds get together? Not just the ones looking to score political points?
• It’s not like this economic disaster is new. Why didn’t McCain have a sense of urgency on Sept. 14, when Merrill Lynch sold itself to Bank of America; on September 15 when Lehman Brothers declared bankruptcy; on (or before) September 16, when the government spent $85 billion to bail out AIG? Oh, wait … new polls are out. McCain was ahead or even with Obama last week … now he’s down in the major national tracking polls.
• Does McCain not understand the logistics that go into a debate of this size? Postponing is isn’t as simple as just picking a new day. Not that I believe television should dictate policy, but all the networks set aside time, are flying reporters to Mississippi (it’s not like the debate is held in NY, where many media are already stationed!), etc. Plus, just imagine all the security-related issues that went into pulling this off.
• If McCain knew how to email (or video-conference) he would know that much business can be accomplished between people in different locations. Thanks to modern advances in technology, people can work from anywhere!
• And, most importantly, if McCain can’t handle managing his campaign and one economic crisis — granted, it’s a major deal, but still … — how does he think he can be president? Do you think the president deals with one issue at a time? McCain needs to learn to multi-task … delegate … be more efficient, etc. Sure, cancel some campaign appearances to participate in shaping the bailout, but at least show the country that you can manage more than one big thing at a time.
• CNN is reporting that Obama called McCain’s campaign at 8:30 this morning to discuss putting out a joint statement. So, this whole bipartisanship stuff was OBAMA’s idea to begin with. Apperently, McCain called Obama at 2:30 to agree and then released his own statement. That’s just slimy. Is that who we want leading our country??

This is a political stunt –plain and simple. Voters have already fallen out of love with Sarah Palin — realizing that her nomination, too, was just for political gamesmanship. Hopefully, they’ll also realize that this is nothing more than McCain trying to find any excuse to slow Obama’s momentum.

Update:

When I was little, my Dad told me that money doesn’t grow on trees. For the first time ever (or maybe the second time … but who’s counting?), I think he might have been wrong. At least that’s the message we can take from this week’s massive federal banking/insurance bail out.

I don’t pretend to be an economist. Heck, I don’t even balance my checking book. But, I do know that something doesn’t quite add up right when the administration tries to tell you that there’s not enough money for universal healthcare … to properly fund No Child Left Behind … to cut Head Start funding … and so on. But, now there’s enough money for a billion-dollar rescue? Hmm. If money doesn’t grow on trees, where did this sudden influx of cash come from??

I think my dad was trying to teach me some fiscal responsibility. Clearly, that was a lesson lost in DC and on Wall Street. Maybe they should call my Dad.