Hank Paulson took to the airwaves yesterday pitching his plan to (again) save the financial system with a huge $1.3 trillion (total) bailout.
That’s a big bet. Plus, we get to increase the national debt by another 10% – to well over $11 trillion.
He says we are doing all of this to calm the stock and bond markets, releive the credit crunch and restore confidence in the American economy. Um…OK, but I have a question.
Who is doing the ‘restoring’here? Just who is on this team to restore confidence?
- Is this the same team that took us into Iraq?
- The same team that coughed up the ball once we were there?
- The same team that squandered tens of billions cleaning up self-generated messes in that failed execution?
- Is this the same team that responded to Katrina?
- The same team that was as inept as the clueless Governor and Mayor of that corrupt state / city?
- The same team that appointed cronies to key positions of responsibility and oversight?
- Is this the same team that turned a blind eye to lax regulation?
- The same team that allowed congress to use Fannie / Freddie as a third-party enrichment tool?
- Is the team that has run up big government deficits that would make LBJ and FDR blush?
Is this the team that is RESTORING confidence? Am I missing something here?
The air is thick with talking heads and know-it-alls espousing tons of theories on why Paulson is wrong or right. The truth is none of them know. Let me repeat that. None of them know. Nor do the walk-and-talks that are repeating someone elses’ less than grounded assessment. We’ve not been here before and I’ve not seen a single historic parallel that provides a solid analog – which is itself an assessment on my part.
The reason we are seeing all of this chattering – in addition to the magnificent egos spewing it forth – is the reality that we have so little confidence in this team to get it right, and at a time when the stakes could not possibly be higher.
Economic historians now agree that moves made by Republican and Democratic administrations created, deepened and prolonged the Great Depression. The thing is, it took 50 years to figure that out. It may be our kids that finally determine if what we are doing now is the right course of action, or a path of folly.
Were this action coming from an administration founded on solid principals and with a roster of significant wins and accomplishments, I (and many others) would be much more comfortable.
You are a smart and well-respected man Mr. Paulson, but your team has some credibility issues. Restore confidence? OK Mr. Paulson, but it begins at home.
– Carl / Blogvious
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