The Biggest Blank Check In Human History

September 20th, 2008at 05:45pm Posted by Eli

…For the worst president in American history.  Yes, that sounds like an excellent idea.  Who needs oversight?  Just give the Bush administration $700 billion (at least) with no strings attached, and I’m sure they’ll use it wisely.

I’m certainly not opposed to a bailout of some kind – just not one of, by, and for the people who created the mess in the first place.  I’d much rather see one that stabilizes the economy in the short term, prevents further abuses in the long term, and that forces the financial malefactors to suffer some stiff financial consequences for their recklessness. (Dean Baker and Ian Welsh have the right idea.)

Interestingly, Sebastian Mallaby compares the bailout to the invasion of Iraq:

….In 1989, there was no choice. The federal government insured the thrifts, so when they failed, the feds were left holding their loans; the RTC’s job was simply to get rid of them. But in buying bad loans before banks fail, the Bush administration would be signing up for a financial war of choice. It would spend billions of dollars on the theory that preemption will avert the mass destruction of banks. There are cheaper ways to stabilize the system.

In the 1980s, the government did not need a strategy to decide which bad loans to take over; it dealt with anything that fell into its lap as a result of a thrift bankruptcy. But under the current proposal, the government would go out and shop for bad loans….

It’s the Bush Doctrine applied to the economy, and it doesn’t sound any better than it did the first time.  The Bushies are even using the same OMG-we-must-act-right-away-or-we’re-all-DOOOOOMED gameplan to stampede Congress into going along.

It is different in one respect, though.  When the C-Monkey invaded Iraq, he used a minimal invasion force that was too small to secure the country.  Now that he wants to invade the financial market, he intends to go massive rather than surgical – but I suspect the outcome will be the same.

(Image by Blueshifting)

Entry Filed under: Bush,Corruption/Cronyism,Economy,Republicans


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