Charles Pillsbury III

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Chad Perrin on the “bailout”

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Chad, rather succinctly, sums up a lot of what has caused the current bailout scenario.

All this crap is the result of tons of bad, awful investments, offering terrible loans to abysmal-risk borrowers. Much of the reason for that is Clinton-era policy that encouraged loaning money so people who can’t afford to buy homes and expand marginal businesses would then buy homes and expand their marginal businesses, specifically to help urban development. While the Bush administration has done nothing to correct the matter, as far as I’m aware, House Speaker Nancy Pelosi’s statements to the effect that George W. Bush should apologize to the American people for “causing” the current financial crisis are somewhat off the mark.

. . . to say nothing of the forty years or so of piss-poor economic policy under a long line of crappy Presidents before Clinton came on the scene, all of which set the stage for Clinton’s gaffe.

Now, Ben Bernanke (chairman of the Federal Reserve board) and Henry Paulson (Treasury Secretary and IMF board member) are trying to harangue Congress into approving a $700 billion dollar bailout for more failing organizations considered “too big to fail” by supposed fiscal wizards like them.

[From Chad Perrin: SOB ยป You've heard about the $700B bailout. Right?]

I realize there is some segment of this plan which is designed to use public funds to loan to private enterprises (or buy our private assets) in an effort to stabilize the economy so we don’t all end up poorer than the bailout will make us. However I think the government trying to be the visible hand to “fix” things after its own efforts to be the vaguely translucent hand managed to screw up the invisible hand’s market regulations is a bit of throwing good money after bad (ok, so that invisible hand metaphor was stretched a bit). Realistically the last 15 years of government have done the majority of the damage to the economy, and that has come under democratic AND republican presidents and democratic AND republican led congresses. To use a sports(ish) metaphor, it seems we keep asking the Yankees and the Red Sox how to run a team on the cheap, and somehow are surprised that neither steer us well.
It looks like they’ve passed some version of it now, though I’ve not looked at the final revision enough to know how much worse (can’t assume it got better) the final one is than the initial version was.

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October 4th, 2008 at 11:04 am

Posted in Blog Entry, Misc

2 Responses to 'Chad Perrin on the “bailout”'

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  1. How much worse? Well, it’s basically exactly the same bill with a whole crapload of porkbarrel riders tacked on to entice Representatives to vote for it. In short, you’re right — it’s no better.

    apotheon

    4 Oct 08 at 12:16 pm

  2. Thanks for the depressing update Chad.
    http://tinyurl.com/sfbailpork (found via http://www.wisebread.com) has some of those earmarks listed… now I’m even more depressed.

    cpillsbury

    4 Oct 08 at 9:41 pm

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