What do we do?

Surely Harry Reid has the answer. Democrats have laid this scandal at the feet of Republicans. They insist that had they been in charge (Ed: don't they control both houses of Congress?) this never would have happened.

OK, Harry, what do we do?

"'No one knows what to do."

Well, that explains why we just bailed them out then. We didn't know what else to do.

Maybe Chris Dodd knows if this was the right or wrong decision:

Dodd is chairing a hearing later this morning to examine the events surrounding the Bear Stearns bailout. "I think they made the right decision," Dodd said in a television interview. (WSJs Market Watch, by Greg Robb) - Senator Chris Dodd on April 3, 2008

Dodd said he opposed the government's decision to guarantee the sale of Bear Stearns to JPMorgan Chase in March. (Courant, by Eric Gershon) - Senator Chris Dodd on Sept 16, 2008

So does the later no trump the earlier yes or do we just hedge and then claim both that way when we really know you can claim to be right all along.

Look, I don't pretend to know enough about AIG's position and holdings, bad debt and good debt, cash position, etc. I do know that if you don't let these things fail, however bad things get, you set a very bad precedent and one that is applied both capriciously and arbitrarily.

If AIG were allowed to fail perhaps the government would be forced to re-examine their regulatory and tax role in both the market and the lives of ordinary Americans. That last bit is probably just wishful thinking.

Comments

Paul Smith Jr. said…
It's time like this that remind me of the greatest definition of conservatism I've ever heard: "Don't just do something; stand there!"

A lot of standing, instead of doing something would go a long way to improving our situation.
Paul Smith Jr. said…
Another quote that applies in this situation from one of my favorite TV shows (although it's not one of my favorite episodes of that series):

Jimmy: Just remember, Dave, let it out...
Dave: Or sweat it out. Yes, I know, sir. I just love advice that rhymes.

If we let the economy rid itself of the failing companies, it will be a lot less painful than it we try to artificially sustain them.

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