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Three questions:

  1. The "bail-out" is rapidly becoming THE defining issue of the election.  Obama's objective has to be to avoid contamination or blame for the fall-out - so he will probably not do much - except perhaps support the Dodd plan.  Has he done so?

  2. What is the problem with using the $700Billion to help distressed borrows who are at risk of default - i.e. go to the source of the problem and help the people effected directly.  This would mean that the assets lose their toxicity whilst at the same time more discretion can be applied as to who is helped with their repayments.  It also starts to reverse the impoverishment of the middle classes.  Paulson/Bernanke/Bush have effectively legitimised a massive increase in public spending - why not use the $700MB to help those citizens wo need it most - those who have been forced into debt beyond their means?

  3. What if the $700B isn't enough, and much more is eventually needed.  Could we then not see an inflationary spiral of Weimar/Zimbabwe proportions?  All the more reasons to bail out distressed borrowers rather than irresponsible bankers?


Vote McCain for war without gain
by Frank Schnittger (mail Frankschnittger at hot dotty communists) on Wed Sep 24th, 2008 at 09:53:43 AM EST
Both the two trillion Dodd plan and a one trillion foreclosure-infraestructure plan are needed.

If you only prevent foreclosures and put money on people's hand you do not solve the credit problem the US has to make the transition in the eocnomic system from construction-debt to doing-stuff and local copetitive services.

Of course, you can change the Dodd's plan for nationalziation of the banking system.

A pleasure

I therefore claim to show, not how men think in myths, but how myths operate in men's minds without their being aware of the fact. Levi-Strauss, Claude

by kcurie on Wed Sep 24th, 2008 at 10:43:45 AM EST
[ Parent ]
BHO is triangulating. yesterday's news he back-pedalled promises to support (any) bailout and bite McCain's ankles. Sorry.

Maybe he'll have a better angle tomorrow.

Diversity is the key to economic and political evolution.

by Cat on Wed Sep 24th, 2008 at 02:58:39 PM EST
[ Parent ]

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