Risk Rap

Rapping About a World at Risk

Ghost in the McCain Machine

McCain must think he is suffering from déjà vu. Or maybe he thinks he is caught in a 1980’s time warp. Or maybe divine justice is righting the cosmic scales for transgressions from a time long past. The reappearance of a Resolution Trust Corp. (RTC) type agency to deal with the current banking crisis must have McCain cursing the God’s of Commerce for resurrecting this ghostly specter to haunt his presidential electoral campaign.

Flashback to Its Morning in America during the Reagan Administration. The Savings and Loan industry was riding the high economic tide brought on by favorable interest rates and an accommodating regulatory regime. Such ideal conditions incubated a culture of excess, corruption and fraudulent lending. Lincoln Savings and its Chairman Charles Keating conducted illegal business practices. Keating actively courted politicians to run cover and deflect regulatory examinations into its business practices. John McCain was one of five US Senators who received substantial campaign contributions from Keating. The Keating 5 as they became known, tried to deflect regulatory examinations of Lincoln Savings. Keating did the perp walk and became the villainous poster child of the S&L Crisis. The RTC was an agency created by the Federal Government to seize assets of insolvent S&Ls; package and sell those assets to avoid catastrophic economic consequences.

The S&L crisis and the RTC cost the US taxpayer $100B. John McCain will forever be linked to this black stain on the history of capitalism. Its also a strange and ironic Karma as the ghostly apparition of a resurrected RTC rises from the grave to slowly stalk McCain as he reaches for his long sought presidential prize.

Music: The Police, Spirits in a Material World

Risk: Karma, electoral


September 19, 2008 - Posted by | banking, credit crisis, McCain, politics, pop | , , , ,

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