Video: Cavuto and Ben Stein scream at each other over the bailout
posted at 6:04 pm on November 24, 2008 by Allahpundit
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A follow-up to the last bailout post: What exactly do opponents like Cavuto think/hope will happen if we don’t rescue mega-banks like Citi? It’d be one thing if they believed everything would resolve itself after some sort of correction, but my hunch is that they expect the worst-case scenario — a depression with unemployment in the double digits — and greet it as somehow salutary, as a necessary lesson to Americans about spending habits and to financial institutions about recklessness. Maybe I’m wrong. Bailout naysayers, explain to me again why we shouldn’t be doing what we can to forestall a systemic collapse by injecting huge amounts of capital into the market. Granted, it might not work, but if you’re using hoses on a fire hoping to put it out, you’ve at least got a chance. Going the laissez faire way this time feels like standing there and watching it burn, hoping against hope it’ll burn itself out. While reading “The Road to Serfdom,” natch.
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Smaller banks are still well capitalized. They are lending money at the same rate as prior to the “collapse”
This affects big banks, who had risky models to begin with. Screw them.
Smaller banks are being forced to take bailout funds, even if they don’t want them, to make the bailout seem legitimate.
Are you okay with that?
lorien1973 on November 24, 2008 at 6:07 PM
This will be fun to watch.
ThePrez on November 24, 2008 at 6:08 PM
Hey; as long as you “feel” like doing “something” – well, hell, why bother further discussion?
lorien1973 on November 24, 2008 at 6:08 PM
Inflation – you cannot pump more money into the system wihout side effects. It’s not that difficult.
Removal of the moral hazard.
Etc etc etc.
lorien1973 on November 24, 2008 at 6:09 PM
The problem with the bailout is that in the very best case it just buys time. It still leaves the same dysfunctional institutions doing the same dysfunctional bullsh!t (over-leveraging everything to and well past the point of insanity). The bailout costs a metric buttload of money and we’ll get to do it all over again down the road.
Yes, there’s probably some moralistic schadenfreude going on, but the underlying point is still sound – defective institutions need to die or reorganize themselves. The ones that die will be replaced by new ones that hopefully will learn from their mistakes.
ErikTheRed on November 24, 2008 at 6:10 PM
So let me get this straight … the banks are in these situations because of stupid business practices … so instead of correcting the practices we just let them slide on the taxpayer dime … but they aren’t “forced” to stop the practices … nice
anyway … when do we suspend mark to market accounting?
seems like a problem
joey24007 on November 24, 2008 at 6:10 PM
So because Citi “fails” that means all of its assets and liabilities become worthless and everybody just automagically owns their homes?
It doesn’t work that way. The assets and liabilities will still have value and will be bought up by other banks that can manage them.
You gotta wonder, if Citi is in THIS much trouble… why were they fighting to acquire Wachovia just 3 weeks ago?
Skywise on November 24, 2008 at 6:11 PM
So you believe that if we do nothing, there will be a short-term correction, and then the markets will return to normal?
apollyonbob on November 24, 2008 at 6:11 PM
Capitalism sure was fun while it lasted…
It's Vintage, Duh on November 24, 2008 at 6:12 PM
AP, the alternative is to watch both the government and the private sector go down in flames. The Treasury is not some bottomless wellspring of money. That’s our money that they’re injudiciously dumping onto companies. $300 freakin’ billion to bail out Citi? Capitalism will survive because people will still need to find a market for their needs and wants. Sellers will find a way to meet that demand, but not if every frackin person is going hat in hand to Uncle Sam. These morons dumped Fannie/Freddie on us and now they have the keys to the bank?! There has to be a better way.
Flyover Country on November 24, 2008 at 6:12 PM
Yup. Although it’s more correct to say the markets will rebalance and THAT will become normal. But that’s what’s happening anyway.
Skywise on November 24, 2008 at 6:14 PM
Eventually yep.
I think the recent volatility is a combination of:
fear of new economic policy (tax increases; capital gains mainly)
not knowing what government will do
If government said, we can’t help and we won’t help. companies would be forced to fix things themselves. When there is the possibilty of government cheese around the corner, there is no incentive to do anything at all.
So, you have the same company running with the same crappy business model getting money from people who helped create the mess in the first place. Does that sound right, in any sense of the word?
lorien1973 on November 24, 2008 at 6:14 PM
I wish we could try the libertarian approach to see what would happen, however if doomsday happened as Ben Stein is sure of, I don’t really want to live through it.
Stein sees a massive bank failure and Credit drying up if nothing is done, leading to the complete and total collapse of all business to point Americans are no longer getting paid. at that point, massive riots and a war of the surivival of the fittest breaks out.
jp on November 24, 2008 at 6:14 PM
Things must be a LOT worse than they appear.
JustTruth101 on November 24, 2008 at 6:14 PM
Out-freakin’-standing question. It really makes you wonder if they truly are in trouble, or if they are just taking the opportunity to feed at the trough like so many others.
thirteen28 on November 24, 2008 at 6:15 PM
Why are the autos using bailout money to beef up their factories in Brazil?
lorien1973 on November 24, 2008 at 6:16 PM
didn’t paulson or something say that they don’t even know where the bailout money went?
And isn’t the oversight committee that congress was supposed to set up to monitor the bailout funds completely devoid of people to oversee anything?
Hellz yeah. We need more of that. It’ll fix it all.
lorien1973 on November 24, 2008 at 6:17 PM
Sorry, OT: just reviewed my first newsletter from the ManlyRepulic. It was attached as a PDF, so I’m not cyber-savvy enough to know how to cut and paste parts w/o doing the whole thing (too lengthy), but y’all gotta register at Manlyrash.com and get this. Here’s a tiny sample:
“…the way home lies along the clearing cut through the brush a generaqtion ago by Ronald Wilson Reagan–a clearing that today is barely visible because brambles, briars and thickets of weeds have been allowed to overcrowd it and nearly obliterate it. But the path is still there and it is up to us-all of us-to clear it once more for future generations.
(Deep inhalation) Ahhh fresh air!
Chewy the Lab on November 24, 2008 at 6:17 PM
We don’t have a laissez faire economy, so letting large institutions fail as a lesson to others is suicide. Government policy and ineptitude got us into this mess, government policy and ineptitude will have to get us out…
Kenrod on November 24, 2008 at 6:17 PM
Localized in America only? Come on, think bigger, world wide anarchy!
I only hope it happens on a thursday so I get a three day weekend out of it.
ThePrez on November 24, 2008 at 6:19 PM
Didn’t this same argument appear at the dawn of the industrial revolution? Look at all those craftsmen out of work, all those people who make things one at a time by hand: cobblers, seamstresses, basket-weavers and gun makers.
Terrible what happened, too bad we couldn’t inject capital into their dying business models back in the 1840’s in an effort to keep them from being unemployed.
Bishop on November 24, 2008 at 6:20 PM
Nice! I’ve been working out really hard lately. I knew my jiu jitsu training would pay off someday!
Zetterson on November 24, 2008 at 6:20 PM
Sometimes the economic downfall is needed. It is the ultimate “RESET BUTTON” to the terrible economic spending & money printing policy of the global crisis. It can’t be all party balloon and confetti all the time. There has to be a crash. It is unavoidable. 80 years since our last major depression? I’d call that a good streak.
portlandon on November 24, 2008 at 6:20 PM
They wanted Wachovia’s deposits and a federal guarantee behind the Wachovia’s failing assets.
Kenrod on November 24, 2008 at 6:21 PM
Allah, it feels to me (and I’m not necessarily an opponent of the bailout) that your metaphor is a little off. Maybe if you could replace water with something that’s actually more valuable and not as easy to replace.
In your metaphor, we lose nothing in at least trying this, but in reality, if we’re wrong, it could make this thing worse.
But to continue the metaphor, sometimes we do just let fires burn out, even very destructive ones.
Esthier on November 24, 2008 at 6:21 PM
Thank God we have Nancy, Barney and Barrack to fix all this…
Firebird on November 24, 2008 at 6:22 PM
Chewy the Lab on November 24, 2008 at 6:17 PM
Your link is faulty.
Bishop on November 24, 2008 at 6:22 PM
I will tell you who is right, after we get out of this mess.
right2bright on November 24, 2008 at 6:22 PM
AP have you been to zimbabwe lately?? pay it a visit, and see our future with these bailouts…meaningless money, high inflation…oh yeah it’ll work wonders..
right4life on November 24, 2008 at 6:22 PM
That’s not what he’s saying. Stop being a schmuck. He’s asking for a fact-based explanation of why a bailout won’t work for the banking system, and why leaving it to collapse would. Your first answer actually starts to address it.
But there’s still the fact that much of our economy depends purely and simply on psychology. And if we can’t find a way to explain to the GAP why leaving the system to break down on its own actually will work out in the long run, then it won’t matter. If people truly lose faith in our economic system, then the system won’t work anymore.
Personally, I have absolutely no conviction whatsoever that the bailouts will “work”, in any empirical sense. But what they will do is provide a psychological cushion for people to “believe” that they will. And eventually, things should work out. Hopefully, with the big guys not having as much impact on the economy, and the little guys none-the-worse for the wear.
But that is all contingent that a) we’re not going to have a massive spending spree by Obama/Reid/Pelosi; and b) we actually solve the unfunded liabilities issue.
Two pretty daunting “ifs”, if you ask me.
nukemhill on November 24, 2008 at 6:23 PM
at that point, massive riots and a war of the surivival of the fittest breaks out.
Learn to fish, learn to hunt, find a place up north to hide out.
Bishop on November 24, 2008 at 6:24 PM
You beg the question by assuming that anything congress is doing will ‘forestall a systemic collapse.’ Somehow Frank, Dodd, Pelosi and Reid’s support of all of this does not inspire my confidence.
snaggletoothie on November 24, 2008 at 6:25 PM
I guess some people haven’t paid CASH for anything in so long, they think the sky is falling. Stein sounds like a Global Warming fanatic.
I hope the Gov doesn’t spend too much money ($2 Trillion) before they figure out what to do.
Agrippa2k on November 24, 2008 at 6:25 PM
as far as the psychology of the markets, it was PAULSON who was crying how the sky would fall if we didn’t get these bailouts….talk about engineering a crisis..
right4life on November 24, 2008 at 6:26 PM
I ask this question “would BK solve their problems?” NO, everything I read is BK would lead to full liquidation. So why inject money? I say here is what you do:
Eliminate Captial Gains immediately
Let the Big 3 go if they must
Eliminate Mark to Market accounting systems
Doing number one would immediately bring investment dollars into our country both foreign and domestic to get our economy going again. New jobs, more consumer spending along with consumer confidence. The other automobile companies could in theory purchase the big 3 out of chapter 7 liquidation and take over their manufactioring facilities.
If government wants to spend money, infrastructure, the wall to keep out illegals etc.
The problem with economy and wall street right now is friggin confidence and uncertainty. Nobody knows what the gvmnt is going to do. They need to just say no more bailouts and as of right now capital gains are eliminated. If Paulson would get up and say that I think the you would have a turbulent wall street for a few days but it would finally settle and we can begin.
broker1 on November 24, 2008 at 6:26 PM
Father worked for a bank for nearly 18 years.
Small banks are generally a-okay, my father always had a theory that once the feds started regulating banks more heavily with the BSA, they didn’t want to be bothered with regulating a lot of them, so they’ve manipulated the market. It makes sense to me when you look at it, since small, regional banks would get their a$$ handed to them over filing a suspicious activity report two days late as opposed to a massive amount of filing errors in larger banks like Wells, who got a slap on the wrist.
What I’m saying is the regulatory environment, which has gotten even worse lately, has buoyed the larger banks, they’re already getting government help because the government is in the business of making large, national banks.
These banks can fail, all they would do is break apart and be sold off to the smaller banks, I don’t see how letting Citi fail is going to send us all to hell. Remember, the worst events in history generally occur in response to crises.
John_Locke on November 24, 2008 at 6:27 PM
Ben Stein was sooooooo wrong on many things before the collapse. So he is not one to be listened to at this time. I do like Neil C.
Mercy4Me on November 24, 2008 at 6:27 PM
The problem is singular, simple – money is NOW based on Real Estate. A few properties where plugged in as “unknown” in a spreadsheet, and computers made them “zero”. A few dimwits had an “existential crisis” and imagined that ALL properties were worth zero.
No one wants to get down to reassessing all the Real Estate to reset the baseline. Without that simple action, the Dow etc. can still keep dropping. Put on the brakes.
All the hysterics is a perfect opportunity for Obama. Thanks for the leadership Republicans….
Agrippa2k on November 24, 2008 at 6:28 PM
Ben Stein is an idiot. Just a year ago he was talking about how great everything was while mocking those who said otherwise and now he’s chickensh!t little running around, unfortunately, with his head still attached screaming about the end of the world.
I can see why he doesn’t believe in evolution; he never grew a frickin’ spine.
FloatingRock on November 24, 2008 at 6:29 PM
Yes. The kicker is: Will we know when to stop before the solution brings on new problems?
whitetop on November 24, 2008 at 6:29 PM
Oh, and an afterthought: why in god’s name are we letting Paulson do anything? Goldman Sachs people do nothing but make choices that make some money for themselves, a tiny bit for you, and some more money for them on the way out.
We just gave 700 billion to Goldman so that they can hedge bets on the economy and make more money. This plan ought to go down as one of the most corrupt things ever to happen in a free market.
John_Locke on November 24, 2008 at 6:29 PM
And that’s not to say that I believe we should just be pumping money into the system willy-nilly. Sorry if I left you with that impression. It has been an unfettered, no-holds-barred spending spree. Nauseating.
nukemhill on November 24, 2008 at 6:29 PM
Not sure why, but I’m pretty new at this stuff. Just go to the website.
Chewy the Lab on November 24, 2008 at 6:30 PM
Printing money solves… er… absolutely no long term problem. We’re like people in massive debt thinking that next pre approved credit card will be enough to get us through a tough patch.
These bailouts are lunacy and continue to make the unavoidable day of reckoning that much more severe.
Sugar Land on November 24, 2008 at 6:31 PM
WHAT?! AND BUY A HONDA?!
NO DAMN WAY IN HELL! :-P
ThePrez on November 24, 2008 at 6:31 PM
`tis a joke, don`t get all preachy on me, k?
ThePrez on November 24, 2008 at 6:32 PM
I’ve been reading Money Mischief by Friedman. Highly recommended. He must be spinning in his grave.
nukemhill on November 24, 2008 at 6:32 PM
That’s exactly what we think will happen. If you can convince me that throwing money at the problem will actually prevent it forever, I’ll change my mind. Otherwise, we’re wasting 7.7 trillion on top of the inevitable depression.
jimmy the notable on November 24, 2008 at 6:33 PM
I worry that pumping trillions of liquidity into the economy on top of trillion dollar trade deficits and an economy that has been gutted by the free trade at any cost mantra is a recipe for further erosion and destruction of the dollar.
Could somebody please explain to me how America plans to pay back the trillions of dollars of debt incurred by our trade deficits? We aren’t producing anywhere near a trade surplus and won’t for the foreseeable future. So, short of devaluing our currency are we going to pay back these debts?
And don’t tell me we’ve had these sorts of trade deficits before. That dog won’t hunt. When we had trade deficits before we were borrowing to invest in factories, agriculture etc. Now we are borrowing to buy big screen TVs, cars, oil, fancy over leveraged homes, ets. IOW, we are borrowing to CONSUME.
Tell me please, how can we engineer a soft landing from this sort of irresponsibility?
Charles Martel on November 24, 2008 at 6:33 PM
Putting more money into circulation always has a down side. I’m retired, on a fixed income, and the inflation which is coming on my expense side will hurt me badly.
a capella on November 24, 2008 at 6:35 PM
The problem is that money doesn’t grow on trees. The government doesn’t actually have *ANY* money for this bailout. They haven’t cut spending or raised taxes. I really don’t think they can borrow it – the Chinese are already getting a little bit antsy about continuing to fund our government by buying hundreds of billions of dollars in Treasury bills each and every year – they’re going to start keeping more of that money at home. The only thing the government can do to “afford” this (and I say “afford” in the snarkiest sense possible) is devalue the dollar by printing more money. The only thing keeping the dollar afloat right now is that the Euro is just as screwed up.
Hence, the Zimbabwe analogies. It’s not going to get that bad, but it won’t be anything near good.
ErikTheRed on November 24, 2008 at 6:37 PM
You didn’t see Dylan Ratigan and Charlie Gasparino talking over one another.
Here’s the real solution: there is no solution. We’re just f’ing screwed no matter what we do. Try to stay out of it and let others take the blame.
indythinker on November 24, 2008 at 6:37 PM
One silver lining for y’all, was talking to my financial advisor today and pizzing/moaning about the value of my portfolio (not pointing fingers, just trying to plan ahead). I said, “I’m just scared to death we’re going to be living in a culvert.”
She laughed and said, “Well, if you’re going to be living in one, we ALL will be, so money will be the least of our problems.”
Point being, most folks here have been pretty prudent regarding saving for a rainy day. Thank God for that! We need to think about our security and safety. Remember ole’ (Abraham?Andrew?)Maslow’s law? Anybody?
Chewy the Lab on November 24, 2008 at 6:38 PM
Yeah, but Karl Marx is dancing in his.
FloatingRock on November 24, 2008 at 6:39 PM
You know. . .I simply don’t understand this anymore. Each side is slitting the others throat, both arguments/points sound apocalyptic, both sound insane, and yet there is still no solutions. This is just mind boggling.
cabbageheat on November 24, 2008 at 6:42 PM
I’ll take a crack at it.
The country is in debt for TRILLIONS of dollars. Now the gov’t in its infinite wisdom will add BILLIONS more to that. There will be NO return on the investment because these dinos of banks will not ever pay the money back. Instead, the investment will end up lost in the shuffle.
The banks, car makers, etc will still go out of business because instead of changing their archaic business practices, they will continue as they are.
The bailout is going to “kick the can” further down the road. The market will collapse eventually. And the only businesses that will survive are the ones that can change and adapt to the world. Call it moralistic, call it shadenfraude.
I call it practical and realistic.
mjk on November 24, 2008 at 6:44 PM
If we aren’t already, I suspect we’ll be maxing out our printing presses pumping out increasingly worthless dollars while borrowing the rest to make up the shortfall, if anybody is dumb enough to give us credit, until we can bring more printing presses online.
FloatingRock on November 24, 2008 at 6:44 PM
The best solution I have seen. Just the elimination of the capitol gains taxes will naturally infuse trillions into the economy almost overnight.
conservnut on November 24, 2008 at 6:46 PM
The bailout doesn’t solve any of the institutional problems that caused the financial crisis in the first place. Look at the situation for the next generation: the bailout leaves the same morons who made this mess in charge, with the same disincentives for long-term stability. It practically guarantees this is going to happen again; only the next generation will be so deep in our debts from the current bailout that there won’t be any money to save the bankers.
We’re basically just re-building the Titanic, with all its design flaws intact or exacerbated – hey, great idea, let’s give the government more influence over lending decisions – and then we’re locking the women and children in the boiler room while we head for dry land.
RightOFLeft on November 24, 2008 at 6:46 PM
On the front page pic, it looks like they’re swaying in a duet of “Down By the Old Mill Stream”.
eeyore on November 24, 2008 at 6:47 PM
Capitalism is a natural system. It solves itself. The weak factors in the economy either adapt or perish, thus making it easier for the strong to thrive.
FloatingRock on November 24, 2008 at 6:48 PM
Well the money Chinese leaders gave to our parties paid off well don’t you think??
They NOW OWN the U.S. Thank YOU SPRENDING SPREE REPUBLICANS!!!
That is WHY WE SHOULD NOT BAILOUT AGAIN!!
BroncosRock on November 24, 2008 at 6:49 PM
Have you asked The Boss this question? Anyhoo, I’m glad to see that there is diversity of thought at Michelle Malkin’s 2 blogs :)
fwiw, I’m very much in the we can’t fiddle while Rome burns camp, particularly since this problem was caused in great part by over-zealous “fair lending” lawsuits on the part of the government in the first place.
What the Republicans need to do is to look to the future and demand reform of the laissez-faire underwriting policies which the government forced the banks to adopt with catastrophic results.
Buy Danish on November 24, 2008 at 6:51 PM
Allah – I don’t even balance my checkbook, so, I’m certainly not going to claim to have some great knowledge of what should be done.
I think, however, that’s the problem. There are a lot of people that feel that something should be done but not a lot of people (perhaps not even one single person) that knows what should be done.
When I was younger, some firefighters in my town died trying to put out a fire. The problem was that it was a chemical fire and, when they put water on it, the particular chemical that was burning had an explosive reaction with the water.
If you don’t know what is causing the fire and you don’t know what should be used to put it out, sometimes it’s best to take a step back and wait for a moment rather than charging in so everyone can feel better because something (anything) is being done.
JadeNYU on November 24, 2008 at 6:52 PM
Trying to put a fire out with gasoline doesn’t help.
Jimmy Liberty on November 24, 2008 at 6:52 PM
Well, Rubin probably knew he would be in with Obama so it didn’t matter if the “crisis” happened.
It’s all been orchestrated. The Cloward-Piven Strategy of Manufactured Crisis.
Hmmm.
NTWR on November 24, 2008 at 6:53 PM
Ouch! She throws the analogy right back in his face.
You know what all of this “Gotta do something.” stuff reminds me of?
The famous words of Nelson Muntz:
Lisa: “Why ‘Nuke the Whales’?”
Nelson: “Gotta nuke something.”
jimmy the notable on November 24, 2008 at 6:54 PM
Not if you miss the fire by a mile and not if you are just splattering embers to the surrounding houses.
MB4 on November 24, 2008 at 6:55 PM
It’s a great idea but unfortunately it wouldn’t suit Bush and the rest of the socialists purposes of taking advantage of this to institute their “plans”.
FloatingRock on November 24, 2008 at 6:56 PM
The best explanation is:
“Pain” by Bill Whittle (a brilliant and insightful author)
http://article.nationalreview.com/?q=YWE1YTg0N2I5OTQ1ZWNkYjFmYTNjZjQ2ZmMzYmM5ZjA=&w=MA==
SoldiersMom on November 24, 2008 at 6:56 PM
Lets not forget: fannie mae, freddie mac, and acorn.
allrsn on November 24, 2008 at 6:57 PM
Esthier on November 24, 2008 at 6:21 PM
mjk on November 24, 2008 at 6:44 PM
Yeah, a better metaphor would be peeing on a forest fire. You can stand there with your pants down and feel like it’s helping but the trees just keep burning…
The writer of Proverbs (probably King Solomon, I don’t have a Bible handy) saw this coming a long time ago when he said (paraphrasing) “If you post security for your neighbor once, you’ll have to do it twice!”
innominatus on November 24, 2008 at 6:59 PM
Well isn’t this just all perfect for wealth distribution? This is too scripted! Everyone will be relying on the government which is what we were all afraid of eh! (That last “eh” was for our Canadian friends.)
Vince on November 24, 2008 at 6:59 PM
Not sure what your point is.
Remember that Japan owned us in the late 70’s and early 80’s. Under Raeganonomics (trickle down theory) we bought ourselves back.
allrsn on November 24, 2008 at 6:59 PM
I agree, socialism.
allrsn on November 24, 2008 at 7:01 PM
Hold tight wait till the partys over
Hold tight were in for nasty weather
There has got to be a way
Burning down the house
Heres your ticket pack your bag: time for jumpin overboard
The transportation is here
Close enough but not too far, maybe you know where you are
Fightin fire with fire
All wet
Hey you might need a raincoat
Shakedown
Dreams walking in broad daylight
Three hun-dred six-ty five de-grees
Burning down the house
No visible means of support and you have not seen nuthin yet
Everythings stuck together
I dont know what you expect starring into the tv set
Fighting fire with fire
- Talking Heads
MB4 on November 24, 2008 at 7:01 PM
Quickest way to help the automakers is for the union to give some stuff back!
Vince on November 24, 2008 at 7:01 PM
I would like to say, that if I hear that stupid effing “Definition of Insanity” one more effing time. I will demonstrate the actual definition of insanity! Mkay?
Jeezuz!
ronsfi on November 24, 2008 at 7:02 PM
The bailouts are a horrible mistake because they will not solve the problem.
They do not address core problems and only delay the inevitable.
We are on a slippery socialist slope with predictable outcome.
Valiant on November 24, 2008 at 7:03 PM
To whit!
•Mental disease of a grave kind.
valternativehealthcare.com/medical-terms/
ronsfi on November 24, 2008 at 7:06 PM
Reagan was handed a worse economy. Tax cuts stupid.
Mojave Mark on November 24, 2008 at 7:10 PM
As the democratic party sees it the bailouts do solve a problem as does the economic collapse.
The collapse causes desperation (desperate people do desperate things, accept a extreme expansion of daddy gov.) and the bailout promotes socialism, enhancing thier power and control.
I view this as old news. I have been talking about this very thing on this site for years, now I watch it unfold befor me eyes.
I fail to see how any of this can be a surprise to anyone. But then, we did elect socialists thruout the gov.
allrsn on November 24, 2008 at 7:11 PM
1. It probably won’t save businesses that are fundamentally flawed. There is a systemic reason they are failing, they didn’t just misplace a couple of truckloads of cash.
2. It puts the US government on the hook for these inherently screwed up companies. Washington can’t file for chapter 11 if we blow all this cash and the sector still goes under anyway.
I question the timing of this crisis as much as the solutions. America is fundamentally changing before our eyes in ways we can’t even imagine.
I feel like there’s been a coup…except there aren’t tanks rolling down the street, but a bunch of lawyers and accountants ransacking the treasury.
Asher on November 24, 2008 at 7:13 PM
Yes we are changing, as for the coup- think: soros history.
allrsn on November 24, 2008 at 7:15 PM
Somebody really needs to check the back on Bush’s neck.
If nothing else they may find some strings and pulleys back there.
FloatingRock on November 24, 2008 at 7:20 PM
But there is also controlled burn to stop the forest fire dead in its tracks, it also stimulates germination of seeds of trees that cannot grow in their current environment.
broker1 on November 24, 2008 at 7:20 PM
About as scary as a teen-ager with a no-limit credit card…..
DL13 on November 24, 2008 at 7:21 PM
MB4 on November 24, 2008 at 7:24 PM
I think we’re in free fall; regretting we didn’t bring a parachute.
FloatingRock on November 24, 2008 at 7:31 PM
Did someone slip a hit of acid in my coffee today? Did I just see Ben Stein arguing we needs a massive spending spree to save the economy?
Then again, Ben Stein was one of Nixon’s guys, so perhaps I should not be surprised. Come to think of it, didn’t Jefferson Airplane plan to spike the coffee in the Nixon White House with acid?
Hmmmm. Trippy.
Mr. Joe on November 24, 2008 at 7:31 PM
Investors Business Daily editorial
Skandia Recluse on November 24, 2008 at 7:36 PM
Ben Stein’s op-ed on why we need to bailout our economy
indythinker on November 24, 2008 at 7:36 PM
Without a doubt you are wronger than usual. It sounds great and makes you appear intelligent to go around using terms like “injecting huge amounts of capital in the market ot forestall systemic collapse.” But you ignore the giant hole in your logic.
THIS ISN’T TARGETED MARKET MANIPULATION! There isn’t an overarching set of priorities that they hope to do with this infusion of cash. Congress is throwing money without any accountability, analysis, or plan as to exactly what they hope to do by throwing money around in this fashion. All that is going on is throwing money at any corporation or industry in trouble and hoping that that it makes a difference. Sorry but hope isn’t a plan. For your flawed logic to make sense, there would have to be clear goals for bailing out [insert special interest of your choice here].
highhopes on November 24, 2008 at 7:45 PM
And trying to figure out how we got into the plane in the first place.
highhopes on November 24, 2008 at 7:47 PM
The Federal Govt caused this through the best intentions of the wonderful Community Reinvestment Act.
I take that back. It was not good intentions; it was a cynical vote buying effort by the Democrats and some Repubs who insist on “reaching across.” Does any body think the Dems can be trusted to fix it? Are they even honest enough to fix it? For the answer, visualize Barney Frank, Nancy Pelosi, and Chris Dodd. I am of the opinion that whatever the Dems say do, we must do the opposite.
All the “money” that is being thrown at this problem is borrowed, it is more government debt upon more government debt. Someday it will come due, and we will lose our sovereignty to the international debt holders.
Pelayo on November 24, 2008 at 7:47 PM
I don’t know who said it, but it applies here –
“If you are too big to fail, then you are too big to exist.”
The corollary to that should be –
“The minute you agree to accept bailout money, you also agree to divestiture into small business units that can be allowed to fail.”
Dr. Dog on November 24, 2008 at 7:48 PM
The bailouts are not hoses on a fire… they’re gasoline on a fire!
I fear Bailoutmania will be the Smoot-Hawley Act of the 21st century.
I have 3 kids. My share of what the feds have already pledged is over $124,000. This spending/borrowing cannot be sustained.
edgehead on November 24, 2008 at 7:50 PM
I have more faith in that teen-ager than I do in Congress and the idiots who are demanding bailouts without any plan as to what all this government spending does for us in the long run. Sure, AIG stays afloat but what are the second order effects? The third order effects? The rabid bailout crowd don’t care about these details and never talk about them when they go around attacking those who want more accountablity and analysis before we taxpayers make sure that AIG won’t have to cancel the Christmas Party in Bermuda or Ford’s CEO won’t have to give up the 747 commuter craft.
highhopes on November 24, 2008 at 7:51 PM
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