Tuesday, September 30, 2008

Ahhhhhhh, I Fink I See the Light

You know how I've been saying that something doesn' quite meet the eye about this Paulson bailout proposal? I mean, I keep hearing that not one single economist can be found who thinks this is the way to unfreeze credit, and not one person can be found who likes it. So why would BushCo propose it, I wondered, wondered I.

I heard something on Hardball today that may answer this question. One of Squeeky's guests said that Wall Street would "say" to Obama: "You're proposing all this new spending (healthcare, infrastructure, college loans, renewable energy development, etc.). Well, you can have that, or you can have this (bailout). Which will it be?"

That, Dear Readers, may be the missing piece of the puzzle. THAT would explain why a radically "free" market administration in its waning days would intervene in a market to the tune of $700 Billion.

The good news is that I also understand that Obama has seen that little move coming and inserted into the measure a clause that sticks Wall Street with any difference between the bailout amount and the sum earned for the taxpayers when these bundled "assets" are sold. The trick will be to sell them before the end of Obama's first term, or make recouping the loss a visible part of his re-election bid four years from now.

Have I mentioned? Republicans need to man up and admit that 30 years of Reaganomics got us where we are today, and McCain and his finance adviser Gramm were driving that truck.


shrimplate said...

Somebody over in the crack den stated it this way:

Republicans enrich themselves by ramming through bad policies.

Everyone else gets the shaft.

Blame the Democrats.

Republicans respond with more bad policies.