Bush’s Speech Last Night

How do you know that he's lying? Yeah, his lips are moving.

Bush said the $700bn Paulson-Bernanke Proposal would "buy troubled mortgages at current low prices and hold them until the prices rise." But the truth is (as every economist on the interweb seems to agree, for once) the complete opposite will occur.

The problem that no bank is willing to sell the garbage that deregulators (like McCain's Economic Advisor, Phil Gramm) allowed to be called assets for what the free market believes is the accurate price: it's garbage and deserves garbage prices.

McCain, also lying, said that the reason he won't go to the Presidential debates is because he should go help the discussion in Washington. How's that a lie? As Obama pointed out, "President's have to be able to do more than one thing at once." Obama also pointed out that both of them have big, expensive, fast jets that could get them from Point A to Point B. One Congressman commented, "What's McCain think? We're gonna be sitting in here debating at 9 o'clock that night?"

McCain's such a terrible liar. He stated in the Wall Street Journal:
"America this week faces an historic crisis in our financial system," Sen. McCain said. "We must pass legislation to address this crisis. If we do not, credit will dry up, with devastating consequences for our economy." [emphasis mine]

The issue with the economy is not a lack of credit (credit's what got us to this point), it's a lack of liquidity. No one can get rid of what the deregulation crew (such as McCain's economic adviser, Phil Gramm) allowed to be called assets. These "assets" were simply credit extended.