ON FINANCIAL McCARTHYISM

PAUCITY OF HOPE

(Update:  Fred Wilson bravely weighs in with his thoughts on "Financial McCarthyism" as well following a recent discussion.  He makes some very good points on the subject.  The comments there are especially interesting, on both sides of the issue.)

Over the past few days, I've been talking about the populist outrage around AIG bonuses that is increasingly turning into naked rage, driven by politicians and the media down a slippery slope of hopeless self-destructiveness.  The current state of affairs is turning alarming, to say the least.

Thomas Friedman brings up some thoughts related to this sorry state of affairs in arresting terms:

"We’re in a once-a-century financial crisis, and yet we’ve actually descended into politics worse than usual.

There don’t seem to be any adults at the top — nobody acting larger than the moment, nobody being impelled by anything deeper than the last news cycle.

Instead, Congress is slapping together punitive tax laws overnight like some Banana Republic, our president is getting in trouble cracking jokes on Jay Leno comparing his bowling skills to a Special Olympian, and the opposition party is behaving as if its only priority is to deflate President Obama’s popularity."

It does feel like we have a vacuum of leadership at every level, and it's extinguishing hope everywhere. 

Our leaders and the media are fanning the flames of financial McCarthyism, trying to outdo each other in gathering lists of those who might have made a "bonus".

One wonders where the folks that could lead us through some of this at every level are hiding, hoping that they may yet raise their hand.

Mr. Friedman goes on though to describe why this may itself be a challenge:

"If you want to guarantee that America becomes a mediocre nation, then just keep vilifying every public figure struggling to find a way out of this crisis who stumbles once — like Treasury Secretary Timothy Geithner or A.I.G.’s $1-a-year fill-in C.E.O., Ed Liddy — and you’ll ensure that no capable person enlists in government.

You will ensure that every bank that has taken public money will try to get rid of it as fast it can, so as not to come under scrutiny, even though that would weaken their balance sheets and make them less able to lend money.

And you will ensure that we’ll never get out of this banking crisis, because the solution depends on getting private money funds to team up with the government to buy up toxic assets — and fund managers are growing terrified of any collaboration with government."

The sad thing in all this is that there are countless folks in every walk of life willing and able to do their part getting us through all this period.  We do need our leaders though to stop fanning the flames of class warfare, and doing a whole lot more to bring us together. 

After all, the house is on fire, and we need everyone's help to work together to put it out.  And soon.

Comments

[Ian Culpin]

Petty politics are not the sole preserve of the USA. Politicians around the globe are busy trying to score points against each other in the hope of gaining advantage based on a growing misery index. The public mood is getting uglier, and whilst a small percentage may want punishment for those who caused the problems, the vast majority want solutions. There are some potentially inspirational leaders around the world who must stop thinking about personal and national gain and start working with each other to get humanity back on track. If not the ugly mood will only get uglier.