In a report filed at the Los Angeles Times's Politics Now blog earlier today, Washington Bureau reporter James Oliphant relayed a number of whoppers delivered by Vice President Joe Biden without anything resembling a challenge. In Part 1, I noted how Biden, who in August described Tea Party sympathizers as "terrorists" and in September as "barbarians," today spoke in complimentary terms of how much the Occupy Wall Street crowd has in common with them. In Part 2, I dealt with the Veep's hit at financially struggling Bank of America for having the nerve to try to recover some of what the Dodd-Frank "financial reform" legislation took away by charging some customers a $5 monthly fee for debit-card use.
This final part will deal with Biden's rendition of how the "bank bailout" portion of TARP operated, which is quite different from the reality. The relevant excerpt from Oliphant, which necessarily overlaps the first two parts, follows (bolds are mine throughout):
There are at least two schools of thought in economics. One of them - Keynesian economics - suggests that consumption is the most important element and therefore spending is the way to restore a faltering economy.
This is the theory that's been adopted by the spendthrift Obama administration and often the news media that have argued in favor of moregovernment and personal spending.
But according to former treasury secretary Henry (Hank) Paulson, Jr. overspending was a "root cause" of the financial crisis.
Paulson told CNN's Christine Romans on Feb. 10, "One of the root causes of the crisis were the structural economic imbalances that really result from the proclivity of not just our nation, but Americans to save too little, to invest too little, to borrow to much, to spend too much."
Can I have permission to utter the S-word ("socialism")?
Ken Thomas's Associated Press report today (link is dynamic, subject to change, and will probably be gone in a week) on auto industry bailout ideas emanating from Washington includes these items, all of which expand soc- ... soc- ... socialism:
Legislation proposed by Barney Frank involves the government taking ownership stakes in the companies.
Lawmakers want to use funds that were meant only for the financial sector bailout.
A note that the current bailout is over and above the $25 billion in government-guaranteed loans that has already been approved for "development of fuel-efficient vehicles."
News that auto industry suppliers want in on the bailout action
The United Auto Workers wants a separate $25 billion "to help cover future health care obligations for retirees and their dependents."
For years NewsBusters and its affiliate the Business & Media Institute have agonized over the astounding economic ignorance of many press members who despite their lack of financial acumen have the gall to offer their unqualified opinions to the public.
No finer example of a media member who should understand her limitations and keep her mouth shut during economic discussions was the Atlanta Journal-Constitution's Cynthia Tucker Sunday morning who on ABC's "This Week" actually said that all the problems in the financial services industry would have magically disappeared if only the Bush administration would have bailed out individual homeowners.
Maybe more interesting was that she began her nonsensical accusation by saying, "I've never understood." As this was the most accurate statement she made concerning this matter, she should have stopped there.