Last night, after the House failed to pass the bailout earlier this week, the Senate approved an amended bailout package. The new version contains some differences, including measures that are designed to heed constituents’ calls to "help Main Street."
Unfortunately, I’m not sure that even the Senate version of the bailout package really helps the underlying economic problems. After all, it throws a bone to the American people as a sort of bribe. "Hey," they say. "Look what we’re doing for you. Now re-elect us after we approve this massive bailout!"
It’s just the same bailout package with a couple of nods to the voters. Instead, the whole thing needs something of an overhaul. A completely new bailout package is needed. Yes, something needs to be done, because Wall Street does affect Main Street. But this particular package isn’t it.
What I’d really like to see is for our leaders to emphasize saving and create incentives for that, rather than just insisting that once we have the credit to borrow again everything will be fine. Too bad this bailout bill does nothing about the actual fundamentals of the problem.
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I think the dividing line between Wall street and main street is irrelevant in a free market economy. If the markets are falling the standard of living of Americans will fall. The rich are always outside of the equation but they often make the decisions. That's a reality in any country that is not socialist. So if socialism has not worked around the world. This is the only option wev'e got and they need this rescue, we have no choice. Its too late for tinkering it needs life-support now, emergency surgery.
Posted by: wisequeen | October 2nd, 2008 10:18 am |
The thing is, though, that I don't think that things are going down as badly as we're being told. We're being driven into this in a frenzy of fear. Besides "if socialism has not worked around the world", why are we engaging in a socialist solution?
At any rate, emergency surgery isn't really necessary, IMO. I think that some careful thought is warranted, and some solutions that will help the fundamentals are needed. Throwing an admittedly arbitrary amount of money at the problem only ensures further instability down the road without really addressing any of the underlying causes of this mess.
Posted by: miranda | October 2nd, 2008 10:24 am |