Failures To Communicate
September 30th, 2008 by 
reality
There are two “failures to communicate” on the bailout bill. The first is that the Washington insiders have not bothered to communicate why a bailout is needed, they’ve just threatened “meltdown” or similar if it is not provided. The other is that the grass roots opposition has not communicated that its objection, as I see it expressed, is mostly to the form of the bailout, not bailouts in principle. While people should object in principle, they’re not doing so, simply because they still don’t understand that it was government interventions just like this one that got us here. What makes the opposition really angry is that the proposal is to buy assets for more than they are worth, and they suspect - rightly - that the excess value will flow right into bankers’ pockets. As has the capital that should be saving the banks right now. Also Secretary Paulson’s continuing close ties to Goldman Sachs, for example the inclusion of Blankfein in the Lehman decision, also represent a conflict of interest that turns many people’s stomachs. Mine included. Even bothers Ben Stein, who of late has been a Pollyanna. Read the whole thing, but:
The people whose conduct got us into this catastrophe have not only taken our money, hopes and peace of mind, but they apparently also want a trillion or so more dollars to put into their Wall Street Buddy System Fund. This may be the most dangerous attack on the law in my lifetime. What anarchists even dared consider this plan? Thank heaven that minds more devoted to the Constitution on Capitol Hill are questioning this shocking request.
Maybe, but not for long. Soon the “bipartisan” agreement will pass the legislation, further deepening the anger that much of the citizenry feels as they realize how impotent they are when the two parties conspire. Just storing up more trouble for the future.
Paulson should resign, and if bailouts are necessary, they should be done by conservatorship like Fannie and Freddie, preserving client accounts but wiping out equity and debt as losses occur and taxpayer money is injected.
Posted in Ben Stein, Government, Rogues and Rascals, Stocks, The Economy | 
October 1st, 2008 at 2:09 am
The people whose conduct got us into this catastrophe have not only taken our money, hopes and peace of mind, but they apparently also want a trillion or so more dollars to put into their Wall Street Buddy System Fund. This may be the most dangerous attack on the law in my lifetime. What anarchists even dared consider this plan?
Public thievery has nothing to do with anarchism.
October 1st, 2008 at 2:15 am
Seems ‘blockquote’ tag was ignored this time. Did I made a mistake, or what?
October 1st, 2008 at 3:37 am
Not sure, but I think the html in comments is restricted by Wordpress. Sorry ’bout that.
October 1st, 2008 at 6:59 am
Reality, I am against all bailouts but I also know that people will not leave things alone. Hence, my attempts to kill Paulson’s looting bill and try to get something else in its place that will give cover to the people voting against Paulson to say, “look, we did something”.
I have been asking my reps to impeach Paulson, Bernanke, Cox, abd Bair. Paulson as GS CEO is one of tbe architects of this crisis, whereas the other 3 are culpable as it was their responsibility to regulate the banks and instead they have become enablers of fraud perpetrated by the banks and in the name of saving the banks.
I wonder if any of this will ever be investigated. The email records at all the key firms will probably seal the prosectutions of many if investigations are ever started. And it is notoriously difficult to permanently get rid of emails :-)
October 1st, 2008 at 1:29 pm
I think very few house members understand what is going on themselves. They are relying too much on what Paulson and Bush are asking for. I saw an interview with a house member (NH I think) who explained the bill with a lot of paranthetical comments on how this whole mess developed. I was shocked at how vague his understanding was. I suggest that house members have a very low financial IQ. I aslo read that congressional staffs are typically twenty-somethings with liberal arts degrees — hardly the type of people to work a good deal for taxpayers with the rocket scientists on Wall Stree. I am not optimistic.
October 1st, 2008 at 2:32 pm
Nor should you be. Quite apart from the generally objectionable aspects of the bailout, the fact that there was no more staff work done than a three page document with no specifics and a number apparently pulled out of the air is incredible.