Thursday, September 25, 2008

No Sale, Mr. President

President Bush advocates a $700 billion bailout/rescue plan. Sorry, Mr. President. This has a Harriet Miers/immigration reform feel to it.

Please don't confuse this blog with MoveOn.org and other fanatical Bush haters, but I don't trust the president on this. Not because he's evil. I just don't think he's truly conservative. I think he's more elitist than populist.

The Miers nomination for the Supreme Court was mind-boggling. The immigration reform package of spring 2007 was more understandable given Bush's approach on the issue. In both cases, the populist conservative majority flexed its muscles and stopped the president from lurching in the wrong direction.

A New York Times story in today's Omaha World-Herald says:

For the first time, the administration signaled that it would be willing to make major concessions to secure congressional approval, including limits on pay of executives and a plan to give taxpayers an equity stake in some of the firms so that the government can profit if the companies prosper in the future.

IF they prosper?! We're going to subsidize companies that might simply consume our tax dollars and expire?

Anyway, it took pressure from the people on their congressional representatives to get the president to consider such "major concessions"? That does not raise my comfort level.

I hope the crisis doens't devolve into a same-old partisan fight, but it may fall to Republicans to put some brakes on this train and make sure it makes sense.

1 comment:

OmaSteak said...

The bailout doesn't make sense and probably won't work. By this time next year, or sooner, more mortgages, home equity, car and student loans will be in default creating even more "toxic illiquid assets" that will have to be unloaded on the taxpayers. The first $700 billion will have gone to private equity and hedge funds who hold the bulk of the credit default swaps that are the real root of the problem...and as more defaults occur, more credit default swaps trigger and the cycle continues. The only solution is to let bad companies/banks fail and take the economic pain that is coming. If you aren't in debt and don't rely upon credit to live, you'll do fine. If you do, you're toast...and you have "earned" the toasting.