As most who live here realize, Michigan has been on the forefront of the recession for.. oh.. About 6 years now. Some would suggest that to discover the reasons, we will perhaps have to defer to a more historical perspective. In other words, “perhaps at a later date.” However to the victors go the spoils, and part of the winning package is the ability to slant the perspective and prolong consequence in perpetuity. ..umm did I lose you?
Look, understanding what to do is ALWAYS the solution, correct? Walking from point A to Point B requires the first step to be taken. The obvious is often taken for granted, and the first several folks who persist in their migration to the desired destination (Point B) and FAIL to note the precipitous 100 foot shear wall hole between those two points will discover they have made a bad decision to proceed forward. We can learn from them. ..Or can we?
Consider the basic and fundamental reason for the current financial (housing based) crisis. It started many years ago with one of the most incompetent presidents this country has ever seen. See if you can guess from the following multiple choice:
I believe the answer is somewhere along the lines of 1977: Jimmy Carter rams the Community Reinvestment Act through Congress. Note that it has since been reinforced by Democrat (Clinton) and Only slightly rebuffed by a distracted Republican Bush white house, however note that even Bush’s administration Mankiw warned of trouble:
“2001: Bush administration warns of impending doom. In Bush’s first year in office, the White House’s chief economist, N. Gregory Mankiw, warned Fannie and Freddie’s loans to unqualified borrowers and other complications at the two institutions were creating a huge risk for the entire financial system.
Representative Barney Frank (D-MA) denounced Mankiw, accusing him of having no “concern about housing.” ”
However, throughout the time line it would seem Michigan is hardly directly affected by a mere housing crisis correct? Unfortunately at the very same time other forces are at work by the very same philosophers who carry Carter’s message of sympathy for the under served. Those who support the CRA, similarly offer support for government intervention in other areas of national interest, and it is THOSE areas that have really hit home and added ultimately to Michigan’s troubles.
In Iaccoca’s “rescue” of the ailing car maker Chrysler, part of the problem Identified and repudiated as part of the solution at the time was emission standards that were unrealistic, untimely and not particularly cost effective. The removal for a number of years of the government standards saved approximately $650 million and allowed Chrysler to regain independence and the ability to repay ahead of schedule a $1.5 Billion dollar loan.
Current mandates which are created by legislation and accredited to science, ignore realities which affect real people, and also ignore the fact there are some who would exaggerate such “scientific” claims to either take fiscal control or lay claim to power for certain groups. Examples would be Al Gore who has made Hundreds of $Millions through his CO2 speaking engagements, yet lives his life in a way he speaks to abhor.
Nancy Pelosi would have been the recipient of a massive stock windfall if the CLNE promoted Proposition 10 in California would have passed. In my Opinion, Pelosi Abused her position as speaker by not allowing a vote on drilling EVEN IN A DEMOCRAT controlled house so as to keep the prices of oil high and subsequently assuring the passage of that legislation.
Many say that because the automakers only concentrated on big SUVs and had poor quality they are now with their hands out and the Jobs are gone. Those “many” would be wrong. the sudden push by a Democrat controlled legislative body federally had a negative impact on energy policy. A sidetracked Bush unfortunately succumbed to shoddy science claims and ultimately signed on to the “green” initiatives. The Same Green initiatives which limit the manner in which the energy concerns collect, and mandate the products our manufacturers produce.
In Michigan, we reap the benefit or cost of how well national energy policy is crafted. The view of our very own governor is unfortunately reflected in the legislature and current white house occupant. Aligned with Gore, and others who continue to plead global warming (now referred to as “Climate Change”) Granholm supports the very ideologies which has cost Michigan’s industry its strength. Can Michigan continue to ignore historical evidence?
History is now, and elections have consequence.
In the next installment, we look at the next crisis which will be twenty years in the making.