Getting a handle on this meltdown of the nation's financial system is tough; most voters and even many political analysts -- I'll count myself in here -- don't really understand precisely what's happening and precisely when and how the dominos will topple in a way that we can percieve the consequences.
(a) voters, even those who consider themselves to be investors, probably don't understand what Lehman Brothers does -- did, or how an investment bank makes decisions on a daily basis. What they do hear is the name, which conjures up images of sturdiness and cash flow and orderly capitalism.
(b) The reinsurance market is also fairly complex; if AIG is the next concern to fail, what happens?
(c) Both McCain and Obama want tougher regulation, consolidated regulatory oversight boards and transparency, but it's not clear whether any of those things would have -- or even should have -- tempered the orgy of housing market speculation that led to this crisis.
(d) Both McCain and Obama have to strike a balance between acknowledging the crisis and using their authority to convince Americans not to run on their banks and head for the hills. That's what McCain was doing this morning when he said the "fundamentals" of the economy are strong; Obama will strike a different balance.
(e) Both McCain and Obama seem to agree that the government was correct to not have bailed out Lehman Brothers; both seem to agree that the government can't expose itself to too much risk.
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