Economy

Today Chris Matthews met with House Representatives Wexler (D) and Cantor (R) opening up his Hardball show on MSNBC.

http://www.msnbc.msn.com/id/21134540/vp/26754253#26761964

We all know the Wall Street turmoil: Bear Sterns, Lehmann Brothers, Merrill Lynch, AIG, Fannie Mae and Freddie Mac, subprime mortgage crisis.

The truth is that the current crisis is a complex phenomenon that cannot be solved by punchlines, finger pointing and single tax cuts. It's a combination of cyclic economic reality, lack of regulation on the macro-economic level, diminishing workforce performance in the United States due to lack of innovation and efficiency (despite what is believed: education in the United States is subpar, workforce flexibility is nowhere near that of Asia or even some European countries) and a widespread belief in a culture of credit - where liquidity is irrelevant and only solvability matters and that refinancing is an excuse to buy yourself into vertical growth.

Chris Matthews tried to pin blame completely on the failed policies of the current administration and thus putting Rep. Cantor on the spot for that. In my opinion, Mr. Matthews did so in an unfair way, which is not without precedent, by the way. Rep. Cantor defended the Republican policies and of his presidential candidate's quite handily. In doing so however, he does prove Mr. Matthews' point: he acknowledges the current crisis, and provides ways to try to alleviate those, but by doing so, inadvertently attacks the current administration. The contrived position he is in, necessitates him to "take off his uniform" as a Republican - since that brand is in tatters by GW Bush' doing - and to almost defend John McCain as a new, unconnected candidate.

What Chris Matthews tried to accomplish with the big hammer, may come across as the liberal media unfairly trying to push for power in troubling times - using political and moral superiority to downplay ones' conversational opponent. Despite having a point.

Big hammers are not good in economics. The USSR had one in its flag, and look where they ended up.