ComethTheHour

President Bush made a television address to his nation in which he stated that this is the most frightening financial period for nearly eighty years and that the American economy was in grave and imminent danger of a panic that could cause it to shut down.

Today we will discover how true the adage is, “Cometh the hour, cometh the man.” We certainly need to see that man come riding over that Washington hill on his white charger or we all have increased financial problems coming our way in a very short time.

The world’s most successful investor, Warren Buffet clearly stated that the politicians have to get behind this plan, he likened the present situation to an economic Pearl Harbor and he’s not a man known for hyperbole.

Time and the situation dictate that should the folks on Capitol Hill turn down the plan on offer they have to come up with a workable alternative immediately. The seizing up of money currently being witnessed inter bank cannot be allowed to continue without it fundamentally damaging the entire market system.

It is vital that Obama and McCain join with the President wholeheartedly and are seen to enthusiastically support the agreed way forward. If not the dissenting voice had better have a great excuse when America’s voters ask them why they let the world financial system crash because of their short-term political gain.

This crisis and raw politics threatened to delay the first presidential debate as John McCain challenged Barack Obama to postpone tonight's television debate and unite to help Washington fix the financial mess. Obama rebuffed his GOP rival, saying the next president needs to "deal with more than one thing at once."

President Bush warned Americans and lawmakers reluctant to pass a $700 billion financial rescue plan that failing to act fast risks wiping out retirement savings, rising foreclosures, lost jobs and closed businesses. "Our entire economy is in danger," he said. In response the financial markets soared Thursday after the President’s talk with the nation.

The stakes cannot be bigger, as the American people are, in effect, being asked to write out a blank cheque to bail out Wall Street from its own mistakes and greed. But there are few viable alternatives other than a total meltdown, which is simply not sustainable and would lead to a worldwide financial catastrophe.

Some results of this danger are already evident when we see that banks have stopped lending to each other and, instead are hoarding their cash. This increases the risks of weaker banks going bust and then the dominoes could all fall down. What we know already is that if a deal is not done financial hell will break lose.

None of us know whether the necessary arrangements are going to be sealed in the coming hours and days but the signs are that the fundamentals of a deal are still to be agreed in Congress and we can only hope that the momentum for it is inescapable.

There is an old saying that when America’s economy sneezes the rest of the world will catch a cold. Right now Wall St. has pneumonia and this could result in a Second financial Great Depression. We must get it right in America, now, for all our sakes, as this outcome must be avoided at all costs.

President Bush called both his potential successors to the White House to help him cement the rescue plan formulated by Henry (Hank) M. Paulson, Jr., Secretary of the Treasury and Ben Bernake, Chairman of the Federal Reserve. The immediate result in this fast running comic tragedy was a political impasse.

John McCain offered an alternative last minute plan in which the government does not buy the toxic debts, but offered insurance protection against them. I agree that this plan has merit, but this is arranging the deckchairs on the Titanic as it sinks. We cannot wait until we are under the cold and unforgiving water before we have a workable plan in place, which just needs to work and inspire confidence. We can add bells and whistles later.