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July 2, 2009

Rabbi Abraham J. Twerski: The hallmark of a person

Abe Novick: Up, up, and aliya

July 1, 2009

Rabbi Avi Shafran: The Road Taken

The Kosher Gourmet by Marialisa Calta: Get into the holiday spirit with these Star-Spangled desserts

June 30, 2009

Rabbi Binyomin Ginsberg: What makes a great parent?

Caroline B. Glick: Ideologue-in-Chief

June 29, 2009

The Jewish Ethicist by Rabbi Dr. Asher Meir: Beware of 'Caveat Emptor'

Steven Emerson: ACLU pushing for more money for Hamas

June 26, 2009

Rabbi Yoni Posnick: Learn the secret to a healthy marriage from a scriptural villain

Caroline B. Glick: Barack Obama vs. International Law

June 25, 2009

Rabbi Shimon Apisdorf: The Absurd Power of Truth

Jordan "Gorf" Gorfinkle's strip: Everything's Relative

June 24, 2009

Rabbi Yonason Goldson: Advancement of technology is a wake-up call for humanity

The Kosher Gourmet by Andrea Weigl: Summer on a stick: Making frozen treats can be easy, creative and fun

June 23, 2009

Martin M. Bodek: 'On Surnames': And so, We Begin

Caroline B. Glick: The Obama Effect

June 22, 2009

The Jewish Ethicist by Rabbi Dr. Asher Meir: Working for a corrupt firm

N. Richard Greenfield : Where are American Jews?

June 19, 2009

Rabbi Abraham J. Twerski: Emotion v. intellect

Caroline B. Glick: Israel's rare opportunity

June 18, 2009

Jonathan Rosenblum: Sometimes it is more essential to define the nature of evil than good

Jordan "Gorf" Gorfinkle's strip: Everything's Relative

June 17, 2009

Rabbi Yonason Goldson: The Language of Confusion

The Kosher Gourmet by Linda Gassenheimer: Nothing pleases Dad more than a thick, juicy onion-smothered steak. Add home-Baked Potato Chips and …

June 16, 2009

The Jewish Ethicist by Rabbi Dr. Asher Meir: Career v. Careersism

Caroline B. Glick: Obama's losing streak and Israel

Richard Z. Chesnoff: ‘Palestinians’: Never Missing an Opportunity …

June 15, 2009

Israeli Prime Minister Binyamin Netanyahu: How Judea and Samaria can become 'Palestine'

Daniel Pipes: Where Netanyahu's speech failed

June 12, 2009

Rabbi Abraham J. Twerski: Some big thoughts about not acting so big

Caroline B. Glick: Obama's High Commissioner

June 11, 2009

Victor Davis Hanson: Our historically challenged President

Mitch Albom: Beware the True Believers

Lewis Grossberger: What we learn from the new Hitler photos

June 10, 2009

Mort Zuckerman: What Obama and his advisors won't -- or refuse to -- grasp about Israel and the Muslim world

The Kosher Gourmet by Steve Petusevsky Lotsa pasta: Tips, techniques and (amazing) taste

June 9, 2009

Anne Bayefsky: Obama's stunning offense to Israel and the Jewish people

Frank J. Gaffney, Jr.: America's first Muslim president?

June 8, 2009

The Jewish Ethicist by Rabbi Dr. Asher Meir: Merchant must take responsibility for careless shopper?

Mark Steyn: A superpower that feeds on mediocrity cannot survive for long on leftovers from the past

Richard Z. Chesnoff: How do you say 'kumbaya' in Arabic?

June 5, 2009

Rabbi Abraham J. Twerski: In quest of spirituality

Caroline B. Glick: Obama's Arabian dreams

Charles Krauthammer: The Settlements Myth

June 4, 2009

Paul Greenberg: The War Comes to Little Rock

The Kosher Gourmet by Judy Hevrdejs: Splash it on! Tap your inner jazz musician and improvise when stirring up a vinaigrette

June 3, 2009

The Jewish Ethicist by Rabbi Dr. Asher Meir: Q. Should terrible teacher be exposed?

Jonathan Rosenblum: The Israel Lobby: Missing in Action

June 2, 2009

Dennis Prager: The Speech President Obama Won't Dare Give in Egypt

Frank J. Gaffney, Jr.: Pressure on Israel raises war risk

Oct. 29, 2003
Mortimer B. Zuckerman: Graffiti On History's Walls (MUST-READ!)

Jewish World Review March 18, 2008 / 11 Adar II 5768

A crisis grows into its prime

By Wesley Pruden


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http://www.JewishWorldReview.com | Nothing frightens a man like bad news about his money. The war in Iraq, health care costs, gay marriage, abortion and tooth decay are all bad, but not as bad as a faltering economy, stupid.


Everybody's watching to see whether the greedy men at Bear Stearns and others like them will pull down the rest of Wall Street and eventually the shops on Main Street and finally the houses on Coffee Pot Lane. Empty assurances from the wonderful folks who brought this misery to our doorsteps are not very reassuring. The chief executive of Bear Stearns was reassuring everybody that his company was in fine shape only two days before rival JP Morgan bought him out for only $236 million, which is mere parking-meter change on Wall Street.


"Our liquidity position in the last 24 hours has significantly deteriorated," he explained yesterday. Translation for Bear Stearns stockholders: "We've blown a lot of your money and had a lot of fun doing it, and yesterday the vultures came down to feast." The buyout of Bear Stearns over the weekend didn't reassure anyone: Markets were down yesterday all over the world.


Native wit and sense are always more reliable than the expensive advice of consultants, analysts and other soothsayers of the voodoo persuasion, but wit is inevitably drowned by the noise of the voodoo priests. "Last week [President] Bush dared to wander from the [soothsayer] script," the Wall Street Journal observes, citing his remark "that a strong dollar 'helps with inflation' and rued its weakness against the euro. He was quickly reeled in by his advisers, and in his Friday speech to the New York Economic Club, Mr. Bush reverted to the boilerplate language that investors now interpret as favoring a weak currency."


The current terror is traceable to the "subprime crisis" of last summer, when the investment bankers — Bear Stearns first among them — paid the price for greed and incompetence in the form of granting thousands of loans to unqualified buyers of houses, many of them decrepit properties. Such loans turned out to be worthless paper.


Two English entertainers, John Bird and John Fortune, capture the absurdity in a routine for London television. (A YouTube video capture of it buzzes even now about the Internet.) Proving again that satire works best when it cuts closest to reality, Messrs Bird and Fortune, in the persons of an investment banker and his interviewer, explain what happened in the subprime crisis with a devastating mixture of fact and fancy.


What happened, says the faux investment banker, is that a mortgage salesman typically encounters a layabout sitting in his undershirt on the porch of a crumbling house "somewhere in Alabama" and offers to lend him the money to buy the house before it falls down. The resulting worthless mortgage is packaged with a hundred other identical dodgy mortgages into something called "a structured investment vehicle."


"I ring up someone in Tokyo," explains the investment banker, "and say I've got this package of mortgages and do you want to buy it? They ask what's in it, and I say I haven't got the faintest idea, and they say 'what do you want for it?' I say a hundred million dollars. They say 'fine,' and that's it. That's how the market works."


An exaggeration, perhaps, but not by much. The public understands instinctively that a Ponzi scheme like this has been going on, and thus the president's reassurance now is not very reassuring. "One thing is for certain, we're in challenging times," the president told reporters yesterday after huddling with Henry Paulson, the Treasury secretary. "But another thing is for certain: we've taken strong decisive action. We've shown the country and the world that we're on top of the situation."


Maybe. We must all trust, and hope, for the sake of the president and everybody else, that events will verify.

Every weekday JewishWorldReview.com publishes what many in in the media and Washington consider "must-reading". Sign up for the daily JWR update. It's free. Just click here.

JWR contributor Wesley Pruden is editor in chief of The Washington Times. Comment by clicking here.

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