Repeal the Bailout

Filed under:Good Grief,Politics,Priorities — posted by Anwyn on November 17, 2008 @ 12:54 pm

I am sick and tired of reading the ever-changing scenarios under which the government or its component part Treasury will spend the $700 billion of bailout money. Do not buy up bad mortgages. Do not inject government capital into either private or public businesses. Let the banks either foreclose or renegotiate with the mortgaged holders themselves, which is not as far-fetched an idea as you’d think (note to Ed Morissey: Exactly why, if lenders do this, should the taxpayer take the risk instead of the bank investor?). People are already bitching and complaining about their 401Ks tanking in the stock market. The market tanking a bit farther won’t kill them. Either pull your money out and thus help it tank, or leave it in and wait for it to go back up as it always does. Do not bail out the automakers. The word “bailout” should be anathema in a capitalist society. Forget curbing CEO salaries and golden parachutes–just wake up, America, and quit investing your money in the stocks of companies who are willing to hire losers with failures like this on their track records. Let the market punish the guilty–by which I mean YOU, American investors. Stop assuming the stock market works the same way as your corner bank and that it’s some kind of travesty if you can’t get the same amount of money back out that you put in. Realize the risk that it is and take it with your eyes open and take far less of it, if you ask me. Stop this madness before extends to industries all but killed by the autoworkers’ unions and unrealistic ideas of what you can regulate people into doing. Kill it. Repeal the bailout.


  1. Agree as to auto manufacturers. Financial institutions are a bit trickier, since we all have a stake in keeping them solvent. If my bank and my insurance company go under, my insurance policies and any non-FDIC insured accounts go up in smoke. But if GM goes under, my Chevy will still run.

    Comment by Xrlq — November 17, 2008 @ 5:02 pm

  2. Are your bank and insurance company likely to, though? There was a lot of panic that I don’t believe has presaged very much actual damage. I admit being rather ignorant of finance on this scale, but a couple of banks went out and bought companies in the midst of the “panic.” And only one bank actually shut its doors and even it was bought out. The obvious answer is “the bailout staved off any more” but I haven’t seen a convincing argument made to that effect.

    Sorry about the long ride in moderation; I didn’t get an email that it was waiting and WP has been kicking things to mod for unknown reasons. I need to upgrade.

    Comment by Anwyn — November 18, 2008 @ 9:19 am

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