TW: As I originally posted, this deal creates a financial dictatorship but I have yet to see a credible and politically viable alternative. Doing nothing is not an alternative. Many on both the left and the right hate this bill sometimes for the same reasons. Some economists who live in ivory towers think they could fashion a more elegant solution, none of which would have the slightest chance of being enacted. We should hope we are creating a not only benevolent but more importantly an effective dictatorship.
From Jim Cramer (btw I use him not because I believe him infallible but because he communicates succinctly on this issue without digressing into economic speak):
"...it looks like most people in America have no idea that what I'm referring to as the Treasury's 'Invest in America' plan -- I simply refuse to call it a bailout -- may forestall or actually stop the crash that anyone who understands finance and has any sophistication knew was going to happen soon, most likely this coming week. Explained poorly by the Bush administration and received with great hostility by the public, this plan was actually a great idea because it will eliminate the issue of solvency for the strong banks. They will be able to get rid of soured mortgage-related paper and raise capital to mitigate other losses in their portfolios. The irresponsibility of the grand standers who didn't understand the proposal or dallied about it shows how clueless Congress is about the precipice on which we continue to teeter...Without the plan it seems pretty certain that there could be some pretty large bank failures...
...I still believe that as it dawns on investors worldwide that we are in a severe recession...it will become clear that we aren't out of the woods by any means."
TW: The Republican House leadership appears to be finally reconciling themselves to behaving like Americans instead of Machiavellian partisans.
From Politico:
"In a closed-door session with House Republicans Sunday evening, Minority Leader John A. Boehner called the $700 billion financial rescue deal a “crap sandwich” — then said he plans to vote for it...After bashing the bailout plan for more than a week, rank-and-file Republicans are starting to accept what Boehner and others stated early on: The current economic meltdown is a bad situation – and a massive government intervention in the financial markets is regrettable response – but it’s their only option at this late stage in the crisis...Rep. Paul Ryan, a staunch conservative from Wisconsin, told his colleagues Sunday that he believes inaction could lead the country into a deep and prolonged recession...'This sucks'Ryan told his colleagues, according to people in the room, before telling Republicans that one of his local banks failed shortly after he withdrew money for his campaign." http://www.politico.com/news/stories/0908/14054.html
No comments:
Post a Comment