hopperbach


More monetary musings

The recent meltdown on Wall Street has produced a sense of urgency among politicians and pundits to get something done…  fast.  But haste isn’t always a good thing — especially where Washington is involved. Fortunately amidst all the weeping and gnashing of teeth, there are a few voices of reason surfacing. Here’s Newt Gingrich weighing in on the proposed bailout:

I think the idea of giving the Secretary of the Treasury $700 billion to bail out Wall Street is just so profoundly wrong. I can’t quite imagine that they’re moving forward with it. I mean, it’s wrong in every way. It’s wrong to take money and bail out Wall Street. It’s wrong to give that kind of power to the secretary of the treasury. Watching this Congress write it makes me worry about what all the hidden details will be.

Agreed. Clueless lawmakers are the reason our financial system is in this mess in the first place and the less they get involved in the ‘solution’ the better. I was actually happy last week when Congress for once admitted they didn’t know what the hell they were doing and announced they were going home. But alas… once again the scent of pork came wafting under their sensitive noses and they scurried back to Capitol Hill.

Bailouts might be politically expedient but they are never a sound solution. Every time the government steps in — like the overprotective mommy bailing her spoiled child out of trouble — they make matters worse somewhere down the line. And unlike a Fannie Mae loan, that’s guaranteed.

I’m not saying there won’t be rough roads ahead and I’m not trying to dismiss the seriousness of the situation. But having weathered a storm or two over the years, there are two things I know with certainty.

  1. Panic, worry and negativity NEVER make a bad situation better.
  2. Panic, worry and negativity are GUARANTEED to make a bad situation worse.

That’s why I don’t engage in any of that nonsense on this blog.  Gloomfest ’08 is alive and well elsewhere on the internet. If you’re one of those who hungers for and thrives on dire prognostications then your nourishment is just a click away. But you sure as shinola won’t find it here.

As for me, I have full confidence that we will get through this and be a stronger and wiser nation for it. Just how strong and wise we become depends largely on how much the government chooses to stay out of this and let the free market reign. Let a correction do what it was meant to do… correct. We’re a tough people. We’re going to be fine.

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-- Cartoon by Steve Kelley 
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