Tuesday, September 23, 2008
The Bush Administration's plans for a speedy bailout of Wall Street seem to have hit a speed bump with a Congress possessing a newly installed spine, or at least a sense of curiosity about what they're being asked to approve. The administration's proponants of the plan are being compared to used-car dealers and there are reactions of disgust and distrust from both parties in both houses of Congress.
Senators McCain and Obama both gave speeches today outlining their problems with the plan. McCain broke his objections down to five points , where Obama focussed on four . I was particularly happy with Senator McCain's insistance that the management of those companies seeking assistance commit to capping their income at the appropriate level for federal employees.
In my view, the problems with the administration's proposals came in two areas. First, their repeatedly inaccurate crying of wolf for the last seven years, has left them with zero credibility. Second, there were no consequences for anyone but the taxpayers.
Fortunately, Congressional ears now seem to finally be resistant to the crying of wolf. Additionally, everyone running for office seems to understand that the consequences of this economic disaster must be laid somewhere, anywhere, but at the feet of the voting taxpayers. Yes, we'll all pay in the long run, whether or not any kind of bailout passes, but Congress seems to understand that we should not be alone.
More on this topic is in a particularly good piece by Washington Post op-ed columnist Eugene Robinson .
September 25, 2008 at 07:12 PM
At the end the bailout costs will be much higher than $700 billion. Now taxpayers will have to pay for the mistakes and the greed of the banking elite, while the banking elite keeps their huge bonuses. Your article title says "There must be consequences", but it looks like there won't be any for the greedy banks...
Chuck from Escondido
September 25, 2008 at 10:11 PM
@ Spencer - then it shouldn't be approved.
October 03, 2008 at 08:25 PM
Sigh of relief, that the bill is passed. the job cuts news and overall uncertainty should reduce now, as DOW shows. As the bill looks like to support business owners, encouraging more recruitment. Lets see whats the long term effect is going to be..