UpChuck Schumer's Bank Run
Last week the McCain camp took a beating over some comments made by former Texas senator Phil Gramm regarding the economy. Evidently Gramm called America a "nation of whiners" and made some mention about the economy being in a "mental recession". While there may be some truth in Gramm's off the cuff remarks, the overall impact of his musings on the actual economy were and are negligible.
To listen to Team Obama, however, you'd think Gramm had insulted Grandma, Apple Pie, the Flag, Baseball, and NASCAR. In truth, it doesn't take much to get Team Obama up in arms.
So, this past Friday came the news that a huge financial institution, IndyMac Bank was taken over by the Feds. In other words, the bank failed. In the wake of the Bear-Stearns flame out, this really isn't surprising. IndyMac was heavy into the home mortgage fiasco and unless you've been living under a rock for the past year or so, that's not a great market to be in.
It turns out that, while IndyMac was on the edge of the proverbial financial cliff, it had some help going over that cliff. The Senior Senator from New York (no, I'm not bashing Hillary), the (less-than) honorable Charles E. "UpChuck" Schumer gave IndyMac a good shove. According to the Office of Thrift Supervision:
The OTS has determined that the current institution, IndyMac Bank, is unlikely to be able to meet continued depositors' demands in the normal course of business and is therefore in an unsafe and unsound condition. The immediate cause of the closing was a deposit run that began and continued after the public release of a June 26 letter to the OTS and the FDIC from Senator Charles Schumer of New York. The letter expressed concerns about IndyMac's viability. In the following 11 business days, depositors withdrew more than $1.3 billion from their accounts.
I know you're all shocked. I am too. Up until now I had forgotten the State of New York has two senators.
It has long been known that Washington DC's most dangerous location is between UpChuck Schumer and a television camera. He is stricken with a terminal case of Napoleon's Syndrome and now he's cost IndyMac $1.3 billion in 11 days. What IndyMac did to deserve Schumer's wrath is as of yet undetermined although there is a distinct possibility that the IndyMac executives did not perform the requisite bowing and scraping the last time they appeared before UpChuck's committee.
So, here's your comparison for the day: Team Obama unleashed a fusillade of withering fire aimed at Phil Gramm because he offended their easily offended over inflated egos. Will Obama come out and bash his fellow Democratic senator for causing a run on a bank reminiscent of the fictional run on a London bank caused by young Michael Banks' refusal to hand over his tuppence?