Silent Archimedes

Opinion: It’s time for Dick Cheney to just leave quietly

Posted by silentarchimedes on January 8, 2009

The VP and P

The VP and P

Another story from the arrogance and incompetence of the Bush administration. Today, Vice President Dick Cheney was quoted in an AP interview,

In an interview with The Associated Press, Cheney also said that Bush has no need to apologize for not foreseeing the economic crisis.

“I don’t think he needs to apologize. I think what he needed to do is take bold, aggressive action and he has,” Cheney said. “I don’t think anybody saw it coming.”

The last part is what really got me mad. A LOT, and I mean A LOT of people saw this economic crisis coming. Let’s take a quick look at some of the groups of people that saw this coming:

1. Gold bugs – Gold investors have been preparing for this economic crisis since the crash of the dot com era. Gold has steadily risen from the mid $200s/oz to a high of $1000/oz, and now at ~$850/oz today.

2. Currency investors – The euro to dollar ratio was at 0.85 at the beginning of the dot-com crash in 2001. Since then it has flipped and risen so quickly to 1.60 in early 2008. Most people familiar with the dollar index, fiat currencies and supply/demand saw this as a huge omen of future economic turmoil. It was only a matter of when.

3. Housing investors – The term housing bubble was surmised to be occurring well before the height of the housing bubble. Many people burned by the dot-com era and became fiscally responsible saw the non-stop rise in housing prices as a major deja vu.

4. Economists – There have been so many books written on this exact economic crisis in the past ten years, of which two have been reviewed on this blog (Crash Proof, The Coming Economic Collapse). Anyone who has read one of these books realized that the American economic system has been living on borrowed time and money.

5. Historians – History comes in cycles because the leaders don’t learn from history. The Iraq War and the recession afterwards first played in the first Bush administration. Instead of learning from it, the younger Bush repeated the exact same historical events.

6. Most sane people – I saw this economic crisis coming a few years ago when I started reading about the US economic system. A lot of my friends saw it coming. A lot of people knew that we only got out of the tiny recession after the dot-com crash and 9/11 because Greenspan and the Feds loosened the credit spigot and money-printing machine. What ensued was the housing bubble and more mortgaging of America’s future.

If all these people, including lots and lots of Americans saw the economic crisis coming, you are telling me the Feds and the economists that govern this country didn’t see it coming? Please… They just chose to look the other way. Why not? They are rich. There is no accountability. Leave it to the next administration or future generations to clean up the mess.

It’s really absurd that Dick Cheney deflects the Bush administration’s responsibilities by claiming that NO ONE SAW IT COMING. To put it nicely, the arrogance, narrow-mindedness and stupidity of the outgoing administration continues. The Bush administration continues to hope that in time history will judge them nicely, but I believe this second recession under their watch pretty much locks in their incompetence regardless of how well Iraq or Afghanistan turn out.

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2 Responses to “Opinion: It’s time for Dick Cheney to just leave quietly”

  1. bwc said

    hahaha, I saw it coming to and had been telling my wife. What she do, she ask over 10 other people ranging from her relatives and friends and all of them.. I mean ALL fo them say, “no, the housing price will continue to rise”, “it will not drop”, “everything else will get more expensive, that’s why the price will continue to rise”. “There will be more immigrants comming in so why will it drop”. “Home depot is getting more business..meaning more construction and renovation, so housing prices will not drop”. Man, endless. This is after I say it will drop and they came with these reasons. So my wife believes the majority. In fact, it was at a point, I was wondering if I am wrong.. But I stuck to my ‘prediction’. I just say NYC will drop too..but should be no more than 20%. But I never argued with them about it and let them say whatever. I even told my wife US will have a huge finanical problem in the future. She shook it off. That was in 2005-2006.

    Then in 2007. People around me say.. “other places drop, but NYC will not”. I still stuck to my forecast. Then other people say “it is still the same price and next year, house price will start climbing again”. I stayed hushed knowing this will not be true and even confirm with my wife.. This is RE, not stocks you are talking about, even if it is true, it will take time, not 1 year!

    Now in year 2008 when events unfold, I rub it in to my wife saying how right I was. She didn’t say anything. I rub it in to her aunt, she didn’t say anything. Then my wife has this friend who at first told her housing price will not drop ended up telling her “Who would ever know this would happen”. Hello?? If you didn’t know , why did you might a prediction saying prices will rise? Man talk about trying to justify your statement. Then when this happen, no one say I was right. Everyone stayed hush. I was tempted to say see, I was right. Then what I predict they will do is say, – well no one saw it coming. Which I will tell them, I did. That’s why I made that statement despite 99 people say the opposite of what I say.

    Only thing I didn’t see, it that Lehman thing and also the whole thing happens this early and fast.

  2. silentarchimedes said

    bwc, thanks for the comments! we need to talk more. lots of stuff we enjoy talking about, even if we disagree. for example, why are you still a mets fan, when you are in the city with the best baseball team in the entire history of the universe. the thing with the housing bubble and stuff is, well, many ppl predicted it, but now what? when and where is the bottom? what’s the economic status of America for the next ten years? Are you pretty much going to move sideways, with the occasional ups and downs, or do we see some significant trend up in the up or down direction? It’s tough, I can see it going either way. Obama seems to at least be making moves to fix it, but I’m worried about the national debt levels and the printing of more and more money. Especially when China and other countries come out of the global downturn, there’s going to be a new wave of problems for America. It’ll be an interesting 10-20 years. And it’ll all be during our core adult years. Wow…

    So what kind of macroeconomic predictions do you have now?

    Btw, bwc, as a response to your relative story. It’s almost impossible talking to ppl that have views of the economy based on emotions and heresay and newspapers. It’s best to keep it to yourself or to write it on a blog. Haha.

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