1993 all over again? No.
“There are two models that Republicans are looking at,” said Grover Norquist, president of Americans for Tax Reform.
“One is 1990, [President George H.W.] Bush gets together with the Democrats at Andrews Air Force Base, raises taxes and loses the next election,” he explained. “The other is 1993, Democrats have a series of proposals to spend and tax. Republicans vote no and regain the House and Senate.”
Renowned investor George Soros said on Friday the world financial system has effectively disintegrated, adding that there is yet no prospect of a near-term resolution to the crisis.
Soros said the turbulence is actually more severe than during the Great Depression, comparing the current situation to the demise of the Soviet Union.
He said the bankruptcy of Lehman Brothers in September marked a turning point in the functioning of the market system.
“We witnessed the collapse of the financial system,” Soros said at a Columbia University dinner. “It was placed on life support, and it’s still on life support. There’s no sign that we are anywhere near a bottom.”
His comments echoed those made earlier at the same conference by Paul Volcker, a former Federal Reserve chairman who is now a top adviser to President Barack Obama.
Volcker said industrial production around the world was declining even more rapidly than in the United States, which is itself under severe strain.
“I don’t remember any time, maybe even in the Great Depression, when things went down quite so fast, quite so uniformly around the world,” Volcker said.
So, yes, keep on acting like the next revolution is on the horizon. To most Americans, this just looks like fiddling while Rome burns.