A Series of Tubes

Apparently the head of Lehman brothers got punched in the face. There’s no video, just the article.

It’s funny to read the free market, chicago boys, neoliberal style economists from about a year ago.  Just reading Larry Kudrow state that “I have long believed that stock markets are the best barometer of the health, wealth and security of a nation. And today’s stock market message is an unmistakable vote of confidence for the president.” is great.  He was of course writing that when the DJIA chart, shown below, was near it’s peak of around 14,000.  Today the DJIA is trading below 10,000 and doesn’t appear to be reversing soon.  So now that the economic data combined with his logic proves the exact opposite point, will he stick by his original statement?  I doubt it.

Just looking over the posts of econopundit shows you how crazy some people are after they drink the free market kool aid.  Here is the author of econopundit, Steve Antler, responding to the Obama camp pointing out McCains previous involvement in the Keating 5 scandal:

“I think this is a terrible mistake for the Obama side. It draws attention to the fact McCain has been around long enough to have dealt with similar crises and their attendant scandals and systemic economic problems.”

When you think that involvement in a corrupt scandal gives you experience in dealing with an economic crisis, you need to hang up your pundit hat.

Update:  Click the link for my current flow chart of thought on the economic crisis.