For the record, I support a bailout, but with $700 billion on the line I think it is extremely important that it is done right. Several University of Chicago economists have proposed improvements to the plan.
I also don't think the bailout will solve the financial crisis, but I think it will help. Bernanke and Paulson (or their successors) will likely be going back to Congress begging for more help in the future.
To put things in perspective, $700 billion is about $2,304 for every man, woman, and child in America. Hopefully, however, the Treasury would be buying assets worth roughly the same amount, so it wouldn't be $2,304 out of pocket for American taxpayers.
The Paulson bailout isn't enough. It is ridiculous that the government is planning to spend $700 billion to bail out the financial system when bank regulators haven't even taken the simple step of requiring banks to preserve capital by suspending dividend payments.
How do Bubble Meter readers feel about the bailout?
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NEVER! Bailouts are manipulations of the market. It's stealing from the poor (taxing everyone) to give to reward those who failed with their own money.
ReplyDeleteYeah, I'm against it too. Though I think it's going to happen because "those who have the gold, make the golden rules". They're going to ensure themselves they get out of this unscathed. It's pretty disgusting though.
ReplyDeleteIf Lance is against it, then it must be the right thing to do. ;-)
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