Tuesday, September 30, 2008

Bailout Fallout

The public is suspicious of the bailout. Normally I'd say that's a good thing, but they seem to be suspicious for the wrong reasons. They think the bailout is political bigwigs helping out their fatcat Wall Street friends. This buys into the false Wall Street/Main Street dichotomy.

Whether the bailout is a good idea or not, the point is that if the crisis isn't dealt with, credit will be destroyed and the economy will contract. The bailout isn't to save some investment banks, or government sponsored enterprises like Fannie Mae--it's to protect the whole economic superstructure that everyone relies on.

1 Comments:

Blogger New England Guy said...

Won't pretend to understand the details (I know enough to know I don't know anything) of the bailout but some observations.

1. If the Reps who voted it down were afraid of voter anger- what are they going to do about all those folks who are angry they lost a big chunk of their 401ks yesterday- maybe this counter-anger will provide cover to support something.

2. Seems like it was the ideologues (at both poles) who tanked the deal yesterday- heard lots of invoking their magic totems of "Free Market" and "Regulation" (Haven't heard "Fairness" yet but sure its out there)

3. Really stupid for Pelosi to go partisan when trying to put complicated controversial deal together. Completely off the wall stupid for the Reps to say they cratered a rescue bill in a crisis because of a snit over rhetoric. Remember Newt in the back of the plane?

4. If Dems serious about a deal, have to get Barney Frank out from in front of the camera. - the worst combo of New York/ Boston accent, speaks every sentence with disdain and ridicule, etc..

6:06 AM, September 30, 2008  

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