A Crisis of Competence

As we look at and experience today's almost unprecedented economic and financial challenges, what is often said is that there is a Crisis of Confidence, consumer confidence and business confidence, that is cascading ever downward. In coming to grips with these problems and solving them, what we face more urgently is a Crisis of Competence in the "leadership" abilities in Congress, in our business and financial world, and in many of us, the American people. This is not to paint each of these segments with a broad brush, although with Congress it is tempting.

What is needed now is a sort of call to arms to work responsibly to understand these challenges, the roles each of each player, and above all the need to pull on the oars in the same direction at the same pace. This theme was emphasized today in a speech by Jamie Dimon, CEO of JPMorgan Chase, to the U.S. Chamber of Commerce. Dimon's stature has grown during this last year such that Bloomberg Radio broadcast his entire speech live plus the Q&A uninterrupted(except for one three minute break in the feed) for almost forty minutes. It was a sensible and comprehensive discussion of what lies before us, some suggestions on a new regulatory framework, an overview of incremental regulatory "fixes" that need to be addressed, and above all the plea that everyone, business and political, Republican and Democrat, work together, and his strong belief that not doing so would be at the peril of extending this crisis for years. That Dimon made this presentation in an impromptu style with occasional humor made it that much more effective.

Congress is playing a game of who can blame whom with the most self righteous indignation, apparently either to mask their inability to understand and work on what is going on or to simply pander to the lowest instincts of their voters. In either case, hiding their incompetence or just playing politics, it will simply extend this downturn. Case in point is the earmark issue. After their six years of larding every bill with earmarks when they controlled Congress under Bush, they are outraged to see $8 billion out of a $410 billion bill in earmarks. The Democrats, on the other hand, hide behind that $8 billion number, as in it's only, but the other side of that coin is if Pelosi and Reid had just played it clean since it is only that much, they wouldn't have put the President in the position today of announcing his signing of the bill with remarks basically apologizing for the flaws. That was upbeat?

Both parties love ridiculing banks and any corporation that encounters trouble. What is this all about. A dialogue would be fine. Mistakes and misjudgements have been made on all fronts. This outright hostility at the congressional panels, Senate and House, Republican and Democrat, in which each member in turn gets the chance to show how clever they are at humiliating people who work hours that they could not conceive of and who know more than they could imagine in most cases.

As Thomas Friedman points out in his column in today's New York Times, "Economically this is the big one. This is August 1914. This is the morning after Pearl Harbor. This is 9/12. Yet, in too many ways , we seem to be playing politics as usual."

Thoughtful people are speaking out. Is it possible that Pelosi, Boehner, Reid, McConnell, Frank and the rest can listen. Is there the possibility that too many people in Congress and elsewhere have enjoyed our prosperity for so long that the competence to rise to the occasion simply isn't there. That's a distressing thought. It's not an excuse for giving up.

Note: Webster's defines "competent" as "properly qualified" and "adequate for the stipulated purpose". That is interpreted here as being able to accomplish what needs to be done. Competence requires some intelligence but intelligence does not equate to competence.