Tuesday, September 23, 2008

Why The Rush For The Bailout?

I will be absolutely honest with you loyal, and not so loyal readers to this blog.
The financial services fiasco is a lot to write about in one post. At some point I will write about it in a series, more than likely at the end of the week. At lot of research has to go into writing about this without sounding half-cocked.
But, I am very troubled with the Bush administration trying to rush this $700,000,000,000 bailout in a hurry.
It smells a lot like the way that they tried to ram through the "comprehensive immigration reform" bill-scam. They kept saying that illegal immigration is at a crisis point and that bill was the only way to get a handle on it.
Well, it wasn't and it ended up dying a rightful death.
It is like deja-vu all over again.
And, if one takes the time to read the fine print, as Amanda Carpenter has done over at Townhall, you find a disturbing little item:

Sec. 8. Review.Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.

While Miss Carpenter's comment about the possibility the whole proposal was written on a cocktail napkin was funny, that little paragraph is not.
How can a law, and this is a law being debated and voted on, not be reviewed by a court or administrative agency? And, do we really want a Treasury Secretary to have such broad powers, possible more than any president of the United States?
This is why this can not be done in a hurry. As long as there is the appearance of action and a reality that it should be done in a timely fashion, the markets will hold on for enough time to get a good, and temporary measure through congress and the president's signature.
After the "comprehensive immigration reform" bill-scam debacle, one would think that the administration would have learned its lesson. But, it appears that it has not.
We need to have an open and honest debate. Yes, it will open up a long-term debate on how this crisis, which it really is, got here and how we do not let it happen in the future. And, that debate has to happen. It can not be put off for the next president and or the next congress.
It is very important that all sides get this right. If not, we could be on a dangerous ground for a meltdown that may not benefit any one side politically.
One place to start a bit of a primer on how we got here is this piece by Kevin Hassett from the American Enterprise Institute and an economic adviser to the Republican presidential nominee, Sen. John "F--- You" McCain.
Lets take a deep breath, have a debate and make sure that if there is to be a bailout, we get it right. And we do not give overwhelming power to any cabinet secretary.

6 comments:

Anonymous said...

Dear Righty 64, This is not like the immigration package. This bail out is being pushed because Wall Street is suffering from Gigantic Wounds. Because we are part of a Global Economy we in essence effecting the entire world markets; The Bolsa in Mexico, the Hang Sen in Hong Cong The Kikkay in Japan ride on what we do. Warren Buffet owns 10% of Goldmen Sachs, he just bought 10% more with an option of an additional 10%. This will help restore some confidence in the market and once the news was released the market went up. In 1890 JP Morgan helped save the United States Treasure by gathering friends of his to lend bail out money to the Federal Government to keep it afloat. Our economy moves very fast and there are a lot firings of CEOs, Golden Parachute retirements have vanished, there is a great reversal of fortunes going on daily. Major companies once considered Fortune 500 are being sold for 10 cents on the dollar or going into Bankruptcy. The only draw back to all of this is that we are on the verge of Socialism. More is yet to come.

Pat Jenkins said...

64 does this bailout assure a like problem not happening again? who knows!! and that should be at issue in some regard!!

Rightwingsnarkle said...

This bail out is being pushed because Wall Street is suffering from Gigantic Wounds

Hmm, deep thoughts on the economy by a guy who rised around on a Vespa.

Major companies once considered Fortune 500 are being sold for 10 cents on the dollar or going into Bankruptcy.

Well, living by the invisible hand of the market can sometimes be a bitch, eh?

This is one of those times that I stand with our host and ask, "What's the big hairy rush?"

Answer - there is no big hairy rush. Just a sucker born every minute, and some of the ride Vespas.

Anonymous said...

Pat, You have a great point but I can assure you that this problem will happen again with the Auto Industry, or the Air Line Industry. The Financial Industry as it is now is what happened to the Saving and Loan in the past. New rules were written then and they will be written now. We used to be able to write off interest on our credit cards. Then to protect the Saving and Loan they only let us write off interest on mortgages. S&L's wanted us to get a line a credit to pay off our cars, and credit cards so we could deduct the interest. It doesn't stop. The funny thing is we are not exempt from our own folly. If Japan gets into trouble we, along with other countries may be asked to pitch in a few dollars. Everything goes up and up until the bubble burst and we start all over again. It happens in business, civilizations etc.etc.. I don't know if it can ever stop.
It may be the human condition.

Anonymous said...

As for you RWS, you stopped taking your medication haven't you? And you are drinking once again. You promised that you would stop. I'm sorry, no one can help you if you won't try to help yourself.

Rightwingsnarkle said...

In addition to his fantastic insights on the economy, the guy who rides around on a Vespa (excuse me, a yellow Vespa) has a razor-sharp wit.

Amazing. I stand in awe. And humbled, too.