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Politics : View from the Center and Left

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To: Sam who wrote (105533)	3/5/2009 11:00:38 PM
From: greenspirit	Read Replies (1) of 540852

Sam - There is little doubt the Obama administration's bank bailout plan is viewed as a huge negative on Wall Street. It's filled with unsound policy proposals financed by trillions of taxpayer debt. The Administration should not embrace misguided legislation simply to show they are "doing something" to solve the “crisis”. Borrowing trillions to purchase a bunch of earmarks not only does nothing to stimulate the economy, it further weakens it. The spending plans announced almost weekly repeat the mistakes made by the Bush Administration. Massive new spending will increase Washington's control over the financial system, where politicians will act as de-facto bank managers and fund managers. That's a recipe for disaster, and the market is reacting to that reality day after day. Assuming any sort of spending will make the economy better is a failed ideology. They seem to be saying; If there's a problem, just throw massive amounts of money and regulation at it quickly – any regulation will do as long as it's done quickly. This will lead to a magic fix to the economy, never considering that poorly designed regulations may have encouraged, rather than prevented excesses in the private markets. The belief a nation can spend its way to prosperity is misguided and foolhearty. The reality is Congress does not have a bank of money to distribute into the economy. Every dollar Congress puts in the economy must first be taxed or borrowed out of the economy, leaving total demand unchanged. Obama has already proposed more spending in two months than Bush spent in 8 years fighting two wars. Does it really surprise savy Silicon Investor posters the market has responded the way it has? I don't think so. No one expected a quick fix to the economy. What's surprised many (especially the market), is to see the worst spending behavior of the Bush administration now on steroids.

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