As I watched the House of Representatives vote down a $700 Billion bailout and the subsequent chaos that did happen and is happening, I thought about the sinking of the Titanic.
There are obvious parallels that we hope don’t occur. While I am a perpetual optimist, I am extremely concerned that if our political leaders don’t put aside partisanship soon, we will be hurtled headlong into another depression. I know that sounds drastic, but when the free-flow of cash stops, depressions happen.
The obvious analogy to the Titanic is that our economy has hit the iceberg of a credit crisis and now our economy is sinking into the icy depths of an oceanic depression.
While true, that isn’t why I thought of the Titanic. Hubris is why I thought of the Titanic.
According to reports after the Titanic’s sinking, someone actually had the audacity to utter, “God himself could not sink this ship.” The hubris of humanity was on full display. And, in a case of truly sad irony; we learned it didn’t take God to sink her, just a big iceberg.
In 2005, the hubris of humanity believed we had entered a new era where normal economic principles didn’t apply. We are so smart that we could create Securitized Investment Vehicles and Mortgage Backed Securities that were literally designed by physicists. They were so complicated that the Security Exchange Commission couldn’t regulate them and bond rating agencies couldn’t analyze them.
The hubris of humanity believed that we are smart enough to create a new economy that was flying so high that not even God could bring our economy crashing to earth.
One iceberg and one credit crisis painfully reminds us of the proverb. “Pride goes before a fall.”
I obviously don’t expect a call from President Bush seeking my advice. But, if he were to ask, here is what I would say.
First, declare October 1, 2008 a day of prayer and solemn reflection. Our nation has done this as recently as the 9/11 attack to remind ourselves that we are mere mortals. When we, in all our hubris, act like divinity, we fall.
Second, go to the floor of Congress like a State of the Union address and declare to the Members of Congress, but more importantly to the American people, that this is an economic crisis unlike anything we have ever encountered. Americans are scared. They need our leaders to act like leaders.
Third, stop making this about Wall Street and make it about Main Street . Explain how this impacts everyone. Of course, the President’s plan isn’t perfect, but we don’t have the luxury of time to work toward that noble goal.
Fourth, implore our leaders to put aside petty partisanship.
History will be a cruel and ruthless judge when it affixes blame. Now is not the time to point fingers. Now is the time to work together and show the world that the United States is truly a shining city on a hill. We may make mistakes, but in times of crisis, we lock arms of unity and find solutions.
Even if President Bush doesn’t call for a day of prayer, I hope each of you will say a prayer for our nation today. Specifically, we should offer prayers for President Bush, Speaker Pelosi, Treasury Secretary Paulson and everyone who shoulders this crushing burden.