Tuesday, September 30, 2008

House GOP repeats 1929 performance



Dave Horsey, Seattle Post-Intelligencer

5 comments:

Zachary Freier said...

Yes, and when I heard the news, it brightened my day. That bailout was one of the most ridiculous pieces of legislation ever to be put up for a vote.

Zachary Freier said...

I like a lot of what Lou Dobbs says, actually. Do you watch his show often, or are you making this insinuation based on his reputation?

The financial crisis we're now facing was created almost entirely by the policy of central planning of the economy, particularly the artificial manipulation of interest rates by the Federal reserve. Sure, it's made our old-style recessions come fewer and farther between, but it's created a whole host of new problems.

The system has been fundamentally broken by such policies. And it sure as hell ain't gonna be fixed by pumping a shitload of taxpayer money into it.

But if you want the most massive legislated upward redistribution of wealth in history, go ahead and support the thing.

Zachary Freier said...

By the way: Why not help out the mortgage-backed security market by bailing out those who hold the mortgages? Help out the homeowners in danger of foreclosure, and you stop the upward chain of defaults, thus fixing the MBS issues, AND you directly help the people (who do, by the way, matter). It'd probably be cheaper, too.

Rainier96 said...

(Just to explain to my vast reading audience, I made a flippant remark about you and Lou Dobbs, which I then deleted because it was just flippant. But you caught it and responded before I had a chance to delete it.)

But my honest reaction to Lou Dobbs is that he is an embarrassing blow-hard who has no business serving as a news analyst. I also am critical of CNN for copying the other cable networks and blending delivery of news and wild statements of personal opinion to the point where it's hard to separate the two.

As for Dobbs, I can go into any tavern in town and have some guy who has had a few too many drinks shout the same mixture of prejudice and half-truths into my ear. As an editorialist, or "analyst," he seems to feel that yelling and rolling his eyes is necessary to make his point.

I watch him with fascination to see if he salivates and drools while he expounds. So, in summary, no, I don't care for him. There are many intelligent people with ideas I dislike who can present them in an effective but civilized manner -- CNN should hire one to replace Dobbs.

Rainier96 said...

Take a look at this column from the New York Times, which sums up my gut reaction to the whole "bail out" situation.

The consequences of any action, or failure to act, by the government is complicated and not easily predictable. I hesitate to jump in with an opinion (guess) as to the ultimate economic consequences of the bail out, because my own background in economics is very limited (an undergrad course in microeconomics, and we are talking about macroeconomic effects).

But it seems to me that sometimes the psychological effects of governmental action, any action, is more important than the actual future economic effects of that action. That was true of FDR, who tried all kinds of actions, some of which worked and some of which were worthless, but all of which gave the impression of leadership and caring by the government.

I'm hoping that a new administration will help restore confidence in leadership. Meanwhile, I'm willing to give Paulson's initiatives -- which follow the recommendations of the great majority of economists -- a chance, in an attempt to avoid a meltdown in the world economy before January.

I respect the arguments against "rewarding Wall Stree," but I think they miss the point with respect to the urgent short term needs of the country. As many have already said, punishment (or more probably, regulation) can be worked out once there some stability has been secured.