We had the largest mortgage players in the country, FRE and FNM fail. And they were quasi governmental agencies!
We had the largest insurance company in the world, AIG fail.
We had BSC and LEH fail.
We had the world's largest industrial company, GE, a AAA credit with a 5% dividend yield, pre-announce lower earnings and have to spend time to re-assure Wall Street on it's solvency.
We then had the world's largest thrift, Washington Mutual fail.
Now we have had the world's largest financial bail-out, a $700 billion deal orchestrated by Treasury and Bernanke fail.
And we have a Republican Presidential candidate, who professes not to know much about economics, thinking he can come to Washington to play economic Superman saying, "I'm an old navy pilot, and I know when a crisis calls for all hands on deck" so he won't have to debate with Obama tomorrow night!
He should just keep his hands on his wife's top, and we would all be better off!
Bernanke should call their bluff. Cut rates. We were at 2% in 2003 when we were infinitely better off than we are now.
And if he cuts rates, he'll take the spotlight off all these political pretenders!