There were two ways of making it work and ensuring its viability:
- That the 2008 Emergency Stabilisation Plan (I don’t know why, but I’m reluctant to call it a ‘law’), which originally consisted of just three pages, was implemented at the discretion of the Bush administration and carried over by his successor.
- May this simple document, which gave the leaders a free hand, evolve into a much more concrete 106-page text, the implementation of which must be overseen by both the government and the opposition.
At first glance, the second option seems the more sensible choice, but it could be a double-edged sword, as partisan political interference could seriously hamper the effective implementation of the 2008 Emergency Economic Stabilisation Act.
The American political class is being put to the test in full view of the whole world. And what is most worrying is that its ability – or inability – to rise to the occasion will affect us all. Perhaps option 1 would have been more effective, albeit less democratic. It would have allowed the freedom to cover up scandals and restore confidence in the system. Something similar to what usually happens when one acts in the interests of the state, or in this case, going even further, System Reason. However, the regulatory framework for the new system – that is, the way in which financial institutions are (I hope) going to be kept on a tight leash from now on – must indeed be agreed upon by both the Congress and the Senate in order to avoid, as far as possible, favouritism, potentially corrupt decisions and the dreaded laxity.
Only as the weeks and months go by will we find out whether the 106-page document, the oversight by senators and members of Congress, and their ability to veto the use of half of those 700,000 millones from the $ programme will prove to be a positive development or not. Since initially only 250,000 will be released, with the option of a further 100,000, the government (whichever party is in power at the time) will then have to pass a renewal before Congress and the Senate before he is grant a further 350,000 million $. To save the system, it may be necessary to take too many politically incorrect decisions that will not pass the scrutiny of so many politicians who, before giving their approval, will look to their voters, fearing they might lose their future support. But this delicate process of implementing these funds requires agility, determination and a steady, surgical touch. This is something the man in the street is not equipped to deal with, and I fear that neither is a large part of the political class, which has been elected on the back of electioneering demagoguery. Politicians and political opportunists, whose quest for fame and power they may now be reluctant to jeopardise by endorsing measures that will have a direct and severe impact on their voters’ pockets.
For everyone’s sake, I hope that the American political class, for once in their lives, will live up to what is expected of them and, instead of engaging in party politics, govern for a few months in coalition with the leadership. And this must be done both by the Democrats in opposition and by the Republicans’ own internal opposition, who, to date, have been the most reluctant to support the implementation of measures that might save the system.
The path is beginning to come into view; now all that remains is for politicians to shake off their bad habits and devote themselves to Politics with a capital P, recalling the times of Plato and the Republic, but without forgetting to adapt it to our reality.
Let us hope that electoral manoeuvring and republican liberal fundamentalism do not hinder the pilots who must guide this aircraft – in which we are all on board – to the runway. It will undoubtedly be the most dramatic emergency landing in history, and one in which there may be many casualties. When we were writing Fasten your seatbelts On 14 September 2007, the aircraft’s technical problems were far less serious than they were a year later. Today, the hydraulic systems – so vital to any aircraft – have failed, and we are hurtling towards the runway in an emergency in which we must all do the right thing to survive. Because if anyone tries to exploit the situation for political gain, they will end up being elected president of the most barren region ever seen. Meanwhile, the markets continue to turn their backs on the 2008 Emergency Stabilisation Act. Something that is, in a way, trivial, because what is really at stake is far more important than the markets.
When a mob exercises authority, it is even more cruel than tyrants.
Plato (428 BC – 347 BC)