Rename the Bailout

A bailout by any other name would smell just a foul. Or would it?

The Bard may have captured the essence (pun intended) of the smell test, but then again he didn’t run for elected office. Nor did he live in a media-saturated, image-drenched world as we do. Therefore, when Bush left it up to the political tone deaf Treasury Secretary and Fed Chairman to be the messengers of the plan to rescue the US and world economy, he violated the primary rule of any political action – control the message. And controlling the message means framing the issue properly with a title that captures the essence of the desired action and one that will help win the hearts and minds of voters and their representatives. After all, who is in favor of a bailout of any sort? Least of all one for the “New York City fatcats (who) expect Joe Sixpack to buck up and pay for all of this nonsense*”?

To some, what you call something may appear to be trivial. However, behavioral scientists (and common sense) will tell you that many decisions made in life (including investing matters) are not done in a dispassionate, rational manner but by using mental shorthand tools (heuristics). And part and parcel of that process is how you frame the issue (framing). Therefore, if you let something get framed as a “bailout”, that’s what it will be perceived as.

So, as many members of the House rethink their profiles in cowardice by putting re-election before country, perhaps the administration and congressional leaders might consider a better process of explaining more clearly to the American public and their highly re-election conscious representatives what it is at stake.

The “Rescue America from a Depression” bill may not be the best smelling sausage to come out of Washington, but the stench of a deep recession will smell a heck of lot worse.

*Rep. Ted Poe (R), Texas

Comments

[GKM:]

Let's just call it 'Bank Stabilization' or B.S. for short and you'd have to be a fool to vote for BS when there are much better ways to shore up the markets than with BS. Remember BS came from the likes of Bush and Paulson and we've had similar offerings like BS from them before.

2008 Sep 30 05:35 PM

[Al-USA:]

Yes, BS... hahahaha

2008 Sep 30 06:26 PM

[Britishsteel:]

people vote against this bailout or you will be reduced to poverty not seen since the great depression, this was on kudlow tonite: 9/30/08

"Paulson and Bush threatened to veto the legislation if there was an explicit prohibition of transfers from foreign banks to an American subsidiary."

THE ASSETS DO NOT EVEN HAVE TO BE AMERICAN MORTGAGE ASSETS - THEY CAN BE AN OFFICE TOWER IN SHANGHAI!

YOU ARE GOING TO GET FLEECED FOR HUNDREDS OF BILLIONS OF DOLLARS IF THIS BILL PASSES - THAT MONEY IS GOING TO GO IMMEDIATELY OUT OF THE COUNTRY!




SEC. 112. COORDINATION WITH FOREIGN AUTHORITIES AND CENTRAL BANKS.

The Secretary shall coordinate, as appropriate, with foreign financial authorities and central banks to work toward the establishment of similar programs by such authorities and central banks. To the extent that such foreign financial authorities or banks hold troubled assets as a result of extending financing to financial institutions that have failed or defaulted on such financing, such troubled assets qualify for purchase under section 101.


votenobailout.org/

2008 Oct 01 08:47 AM

[normthefedup:]

Kudos to you, author. I've said this from day one. Calling this thing the "Wall Street Bailout" has been the problem with getting it passed. Frankly, the poor jerk flipping burgers at the local fast food joint has NO IDEA how much trouble HE'S in. He just thinks that it stinks to give $40 million to the guy who got us into trouble when he's fired. And there, I have to admit, I agree. But this won't really hit home for the burger flipper until the first time McDonald's can't borrow money to cover his pay or the ATM is empty and he can't buy that aforementioned six-pack. Should have been called the American Financial Recovery Act since it's inception. It's all in the perception. Hey Paulsen....take a lesson from history...even it if is from Joseph Goebbels.

2008 Oct 01 10:17 AM

[xsuddensam:]

You can call it whatever you want. When the government starts waving a $750 B package, a red flag ought to go up. You better zip up your pockets and run like hell.

2008 Oct 01 11:29 AM