Boondoggle

One blogger’s personal bridge to nowhere

Failout

Yes, the vote-counting catastrophe that doomed the proposed bailout package was likely a bad thing for the economy, as Monday afternoon’s freefall at the stock exchanges proved.  But just as a 700-plus point drop seemed the harbinger of the economy’s collapse, Tuesday’s rebound reaffirmed that, well, in layperson-speak, stock markets go up and down.  More than that, though, it showed that the panic that a dozen missing votes would trigger a complete financial meltdown was both overstated and — rather intentionally — misdirected.

I am no economist.  But neither are most Representatives.  And practically every economist that I did hear opine on the financial crisis was fairly confident of one thing beyond the general “bad-ness” of the situation: that no one could really know what exactly was going to happen if Congress did not pass the bailout bill.  And for all the talk of the imminent dire straits facing “Main Street,” lawmakers should have been quite aware that the effect of a few days without bailout legislation would almost certainly not even trickle — let alone cascade — down to everyday Americans so quickly.

No, the manufactured panic was quite clearly and quite obviously the product of politics — frantic political posturing obscuring much of any real consideration about the real economic repercussions of a bill, or a lack thereof.  What’s needed is more than just setting aside partisan voting — it’s setting aside partisan panicking.

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September 30, 2008 - Posted by | Uncategorized

2 Comments »

  1. […] Boondoggle Blogging busily for little value « Failout […]

    Pingback by I live on Elm Street — can I benefit from a bailout, too? « Boondoggle | September 30, 2008 | Reply

  2. indeed. have you seen the letter to the American public written by Greenspan and Robert Hall? Interesting stuff – it says that the government should do whatever is necessary to allow financial institutions to keep fulfilling their role in the American economy.

    Comment by Mia | October 1, 2008 | Reply


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