THE BASIS POINT

McCain: I Have An Economic Plan, It’s Good (part 7)

Never seems to go too long before republican presidential hopeful John McCain provides another completely valid reason for us to continue with our series on his economic policy meandering. Here’s what McCain said today

The fundamentals of our economy are strong.

McCain said this today … one day after Alan Greenspan said this is the worst economy he’s ever seen; the same day US stock markets posed their largest declines since 9/11; the same day two of the world’s largest investment banks went down–Merrill Lynch by agreeing to be acquired by Bank of America for $50b in stock, and Lehman Brothers by declaring the largest bankruptcy in American history; and also the same day the world’s largest insurer AIG is poised to fail because it wrote an untold amount of the $62 trillion in credit default insurance that’s been run up since top McCain economic advisor Phil Gramm won a decades long campaign to exempt the credit derivatives market from regulation back in 2000.

For link above, see last 3 paragraphs on why Gramm is a key architect of the credit crisis, beginning with Enron and leading into the credit default swap debacle that’s about to be unleashed on the global economy within one day of McCain’s soon-to-be-legendary statement today. The facts speak for themselves, and McCain speaks for Gramm and other deregulation crusaders whose only goal is to look after the highest earners in our economy.

The Basis Point editor supports Obama. Some of The Basis Point’s regular contributors support McCain.