Tuesday, September 30, 2008

Alternative to the Bailout: Why Paulson Is Wrong

The assumption that both McCain and Obama and everyone who wants to save the economy from apparent ruin is that the Bailout is the only responsible way to stop it. But it's not. Even you don't believe it's reprehensible for taxpayers to subsidize corporations, there's no guarantee it will even work! University of Chicago Professor of Entrepreneurship and Finance Luigi Zingales has written a critique of Paulson's bailout plan which provides an alternative solution.

It's sad that the White House has not brought in economic experts (many of whom think the Bailout is absurd) or anyone else with other solutions -- they'd rather meet in secret and ram things through quickly, without explaining anything to the general public. I've not seen any rational discussion on major networks about alternatives. It's either Taxpayer Bailout or Doom.

We all want the situation to end but accepting a solution proposed by one of the people who caused it at face value is just ridiculous.

UPDATE: Even chief economist at Business Week magazine Michael Mandel, and 200 other economists think the Bail-out is an awful idea. They've petitioned Congress to vote No. Why aren't we hearing their opinions on the TV news? (Oh right, the Media and the Government are buddies.)

Meanwhile, instead of rethinking the solution members of the Senate are trying throw in unrelated frosting (like tax cuts) on top of the original plan to entice Republicans to vote Yes. AND, they've deliberately shut down their email servers to prevent the public from petitioning via Internet (the strategy which had a huge effect on the rejection of the Bailout proposal). Unbelievable.

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posted by Brian at 12:01 PM

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