The same experts, in Congress and out, who did not foresee and who promulgated the current banking/credit crisis are the same ones assuring us their plan for salvation is just the thing.
Is it rational to believe that these creatures have finally figured out what is best for us? Or is better to say: Stop! Just let things fall out where they may. Let the people who caused this pay the price for their own mistakes.
Analysis so far suggests that the entire mess was brought on by Congressional prompting, in the form of laws which would penalize banks for not making risky loans, and by unscrupulous financiers who figured how to game the system. Also to blame are the people who bought absurdly constructed loans, the kind which they knew they would not be able to eventually afford. It is ridiculous to claim that these people were duped by forces more powerful than themselves. Nobody coerced anybody into buying a house.
And who twisted arms of bank executives to pay their failing CEOs millions? What rewards were given to financial engineers who packaged and sold the most creative sub-prime mortgage-backed securities?
There are many guilty parties here, not the least of which are our own elected representatives who reflexively believe that throwing money—as quickly as possible—at any problem is always the solution.
Thus, the belly-aching speech about partisanship by the appalling Nancy Pelosi after the failed vote was particularly galling. Here are two statistics of interest about yesterday’s “bailout” vote:
40% of House Democrats voted no.
33% of House Republicans voted yes
Which is to say, a fairly uniform rejection by both sides of the aisle.
Thank God for that. I in no way want to give any of my money to either over-confident corporate executives or to the people who will lose their homes. I am utterly unconvinced that I should feel any sense of responsibility for any of this mess.
In this current “bailout”, I feel the same way as when asked to contribute money to people who built their houses on a coastal area well known to be in a location of frequent hurricanes. How is their stupidity my problem?
Whatever the solution is, it is not more government.
Incidentally, it’s been little reported so far, but the Fed has already started printing more money to “infuse cash into the system.” One figure I read is $600 million. Next stop: inflation. Some bailout!