Andrew, as usual, has raised a number of interesting questions.
I have just one observation. Does anyone else see the excruciating irony here? The same administration that wants to do away with earmarks and asks everyone to trust the decisions to department and agency employees, refuses to trust those same employees when they make other decisions.
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It's not clear what your
It's not clear what your argument is. We have two branches of the Federal govt that are subject to the feedback of the electorate, jostling for power pretty much as the Founding Fathers intended.
We also have an insulated third branch, the judiciary, and a technically unconstitutional fourth branch of executive agencies that often combine executive, legislative, and judicial functions. Shouldn't the President and VP be at least trying to control those agencies. They answer to the voters, but the bureaucrats don't.
Thoughts on the bank/mortgage industry bailouts?
Freddie Mac and Fannie Mae -- Bloomberg is saying a bailout could double the US deficit ($5 trillion more). But this would be a disaster for the value of the dollar.
Any thoughts on how the government should proceed? It looks like McCain is in favor of taxpayer funded assistance.
Not surprising that this is happening . . . price of food and oil is expediting foreclosures (people have to choose between eating/getting to work and paying the mortgage, and mortgage is the first payment to get deferred -- lots of them have zero or negative equity in the home anyway, so nothing to lose).
OK, so no response on the elephant in the room
but Paulson et al. just came out and said it will be a Fed bailout.
What happens to credit markets now?
Any thoughts on how this affects value of the dollar? Treasury market?
Bueller? Anybody?
Here's somebody on the elephant.
James Hamilton
Thanks for link to Hamilton
I was also pleased (initially) with the solution, especially the government defending the stock.
We have some intentional manipulation of the financial stocks (rumors to take them down) going on, and government needs to step in to stop it.
SEC put the manipulators on notice yesterday, and hopefully they'll make a few of them do the perp walk. Enough is enough. Lehman is getting beaten up, along with others today (National City, etc.) Even when they come out and make a statement about solvency they get whacked.
Fear is driving everything. It's crazy.
Those who worry about the moral hazard make a good point. But if Bernanke and Paulson and Congress balance this with increased(stricter) regulation and oversight of these institutions I think it will work.
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