5 thoughts on the election and the economy

watching the debate this week i was struck by a few things:

1.) the credit crisis has turned into an economic crisis. no longer are the problems relegated to the credit markets. because credit is frozen at a bank-to-bank level the impacts on private borrowers, small businesses and home owners are becoming more than we can handle. consumers can't make big purchases or little one's without fear, employers can't make payroll (because they can't borrow the money they need to pay people) and it's now to a point where California and Massachusetts can't sell bonds because no one can borrow money to buy them. so California is asking the federal government for $8 billion to fill the gap.

2.) the American economic crisis is a global economic crisis. when America sneezes the world still gets sick. put otherwise, decoupling does not exists. markets are more integrated, not less. the entire country of Iceland is capsizing into the Arctic because of their exposure to bad debt. Euro banks are acting in the interest of their home country and not Europe as whole, creating tension in the Zone as they call it.

3.) neither presidential candidates knows anything about these problems or how to fix them. neither does anyone else, despite Treasuries best efforts there is no confidence in the markets, assets and capital remain frozen and it's just getting worse. McCain makes rash judgements and exaggerated motions to act like he's in front of the curve. Obama is slow, methodical and seems at times too cerebral to actually do anything. who we need right now is Mayor Bloomberg.

4.) republicanism is bankrupt of good ideas. McCain said out of one side of his mouth that government action in the housing market, Fannie and Freddy, caused this problem, so, his solution? Have the government take over all the bad mortgages and work them out with home owners? Isn't that Fanny and Freddy on steroids? So much for the CRA being the problem...this more than anything is why Democrats will expand their grip on Washington, republicanism is dead and dumb and everyone who can breathe knows it. and that was supposed to be McCains game-changer!

5.) Obama oozes presidential while McCain is just oozing. Obama is calm, cool, stylish, basically everything McCain isn't. watching the debate put this on center stage for the world to see. i can't imagine after watching that anyone can really say McCain presents more presidential than Obama. it's like putting War Admiral next to a mule.