John Hawkins is really on fire with this one:
If the GOP supports this ridiculous bailout plan, so be it, but understand two things: Number One, I don’t give a d*mn how many 10 million dollar earmarks you oppose, there is no such thing as a fiscal conservative who supports throwing 700 billion dollars of taxpayer money down a rathole in a socialistic government bailout — especially after the other bailouts have failed. Don’t tell me that the same guys who said the other bailouts would fix our problems — and were one hundred percent wrong — probably aren’t entirely wrong yet again when they say the country is going down the tubes if this bailout doesn’t happen. They were egregiously wrong then, so why should we believe them now? Let me tell you straight out: I don’t believe them and I don’t support this bailout.
Number Two, let me make another prediction: if a bailout plan of that size is passed, the Democrats will turn on the plan five minutes after they vote for it and blame the Republicans for it. Since Bush is behind the plan, their attacks will resonate with the American people. Additionally, large chunks of the GOP’s base will be furious over the deal, too, with good reason — and it will likely wreck John McCain’s chances of winning the election.
OK – obviously something needs to be done to help stabilize the markets. Bank runs aren’t good for anyone, and the fact that the Sarbaines-Oxley “mark to market” rules are causing a fiscal firestorm means that we have some kind of sanity to be restored. But just flat out giving a pass to Wall Street and the people who took out loans they could never afford to repay is rewarding stupidity.
Yes – making some kind of commitment to ensure that sound financial institutions can keep doing business means we need to have some government action. But I thought Bear Stearns bailout would do it. No – taking over Fannie Mae and Freddie Mac – wait, giving $85 billion to guarantee AIG. At what point do they come to realize that whatever formula they are using for a bailout ISN’T WORKING?
Insanity – doing the same thing over and over again expecting different results.
So – how about looking at doing something different? Repeal the capital gains tax for 2 years – see what some of those assets that have been tied up forever are worth in accounting for these losses.
But, please God, don’t just give a bunch of Socialists calling themselves Democrats control of the entire US Financial system. In 10 years you will have to go before some government board to get a mortgage of any type.