DenhamsDoesIt

Treasury's Plan Is Breathtakingly Awful

To all those who are crying Communist at the government bailout, while it is a liberal leaning handout instead of the live or let die of free market capitalism, this move is ultimately the most democratic. In fact, it is too democratic.

The average person has never taken economics in their life and gets the whole or a great part of their understanding of the world from television sound bites. Television shows them impending doom, and the populace demands action, by the government, NOW.

My goodness, just listen to the President. It's not a very great oversimplification to paraphrase him as saying, "At first I was going to let the market be, but then some advisers said that its all interconnected and now I am going to take bold and decisive action to save the economy."

This bailout seems to be more than just bailing out banks. It seems to be about convincing people to keep their money in the markets and the banks, so there's liquidity for the economy. Unfortunately, bad business practices are partially vindicated when this is done. Expect a First-100-Days declaration by the presidential hopefuls on this issue, and please watch the debates.

What worries me far more than this temporary crisis is the following question: How do you convince people who don't think deeply about the world that "bold and decisive action," while sounding good in the short term, ultimately undermines the basis of our society?