LAMBRO: Crisis capitulation

Capitalism is eeeevil. We must kill it off so that we can all be equally poor. Oh wait. It was socialized housing that got us into this mess. Never mind, and welcome to the poor house.

From the article: "But most if not all of the debt assets and equity stakes assumed by the Treasury will be sold eventually in the market and the proceeds used to pay off that debt, probably in full". If this is true, why should the government become involved? From that statement the system will self correct. Since government idiotcy contributed to this "crisis", what would make anyone think that they now know how to fix it?

The problem is not so much the $700B, as it is the lack of corrective measures. Cowardice is caving to the Chicken Little panic, and voting for whatever is crammed down one's throat. The very importance of this effort demands that, before DIME ONE is spent, the causes be addressed. Otherwise, the incentive to give up such a cash cow will abate, and, just like the 1980's immigration reform bill, nothing will actually be accomplished. While Dodd's, Pelosi's and Shumer's feet are held to the fire is the time to insist that Freddie, Fannie, and ACORN be abolished, that the CRA be repealed, and that the markets be free to protect themselves from the foolish actions foisted upon them by Congress (primarily Democrats). I have told my congressman as much; you all should as well.

This plan isn't the start socialism in America. So put that irrational fear aside. Those of us who actually get to see some of what is happening in the credit markets are seeing things that shouldn't be happening but are. The velocity of money flowing in the world's economy is slowing down at an alarming rate. If you want to see how the gov't will make the money back read Bill Gross' analysis on Pimco.com.