Sunday, October 5, 2008

Bailout and global "nervous breakdown"

Victor Davis Harrison (a columnist from Stanford’s Hoover Institution) has a sobering op-ed on p B1, Commentary, of The Washington Times today, “Global nervous breakdown?” The link is here.

He points out that domestic economic malaise has tended to provoke international crisis in the past. During Jimmy Carter’s years, Iran took its hostages and the Soviet Union invaded Afghanistan. Now, Iran’s Mahmoud Ahmadinejad (remember that he told Columbia University that there are no gay people in Iran?) ups the ante in his talk against Israel to echo Adolf Hitler’s call for a second “final solution.” He thinks we are distracted enough to let him do anything he wants. (That quotes a line from the little horror film “Bugcrush”).

Russia is getting in cahoots with Venezuela’s Hugo Chavez, something reported just before the financial crisis started to escalate.

Remember, that Hitler and Stalin both rose in a world plagues by the Great Depression.

We could argue with his premise. The Cuban Missile Crisis occurred during a period of relative economic growth an innovation.

Oil is trading somewhere in the 90s now because of reduced demand. It wouldn’t take much a $200 price for oil, as in Stephen Leeb’s book reviewed on my Books blog Sept. 8, just before Fannie Mae started the dominoes to fall. Leeb, remember, has been on CNN warning that if we don’t get a grip on this we could have 25% unemployment and a dictator ourselves.

I remember, when I was growing up in the 50s, the a “nervous breakdown” was the ultimate catchall for going crazy. People would be whisked away. “Nothing to be ashamed of,” they would say. Then it would happen to me.

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