Reader Posts

« previous | TPM CAFÉ READER POSTS HOME | next »

Don't confuse public on bailout

avatar


We need to stop referring to the Democratic plan (or deal) as the BAILOUT.  There are three proposals--they must be distinguished.

Step one is to acknowledge the reality of the credit crisis that can in fact create a world-wide depression.  

Step two is to explain The CAUSE of this crisis-- the complete idiocy of ideologic Republic market philosophy which has now demonstrated its utter failure.

Step three is to clarify the differences between:

Plan 1 = WHITE HOUSE BAILOUT OF WALL STREET
    The Paulson plan that takes $700 billion and puts it in the pockets of Wall Street with no oversight or regulation.  Calms the markets but does nothing to address the cause of the problem--the abject failure of Reaganomics "no government intervention in markets"

Plan 2 = DEMOCRATIC FISCAL RESPONSIBILITY
    This plan promotes prudent government buyouts of selected enterprises.  It is phased, so that only the amount of taxpayer money necessary to stabilize the market is injected at any given time.  In return for their money, taxpayers get ownership in these enterprises.  And taxpayers get regulations of the market to insure that this crisis can't happen again.  The markets get reassurance.

Plan 3 = House Republican Reaganomics
    The House Plan is against both Plan 1 (too much government involvement) and Plan 2 (too much government regulation).  The House plan does NOTHING to calm the markets (can't solve the crisis) and returns us to the philosophy of absolute non-regulation which created the crisis. 

STOP calling the Democratic plan a deal with the White House or a BAILOUT.  While both may be true, such language fails to clarify the actual differences, advantages, and disadvantages of the plans.



Comments (2)

avatar

Perhaps those of you smarter than me can address this issue with more detail; however, it is my understanding that Sweden in the late 90's went through a very similar situation (although perhaps even worse than were we are at this time). Their resolution was very similar to the plan 2 referred to above. It was very successful and the government in fact made money on the deal. In the end there was no cost to the "taxpayer."

Bailout is a complete misnomer.

The Paulson plan as originally presented was a bailout. The revised plan that was initially hammered out in committee was basically a equity/loan deal. There is a big difference. There is also a large difference between handing somebody $700B with no strings and handing over $250B with a great deal of oversight and control.

While I would dearly love to see some on Wall Street get smacked by letting their companies just tank. I also know this is spite and not reality. If we allow the financial and housing market just to find it's own bottom we will finally see trickle down economics work.

Post a Comment

Advertisement
Please disable your adblocker!
Ads are how we pay the bills!

Subscribe

The Coffee House
TPMCafe's regulars

House Brew
From Your Cafe Editor

Special Guests
Big names and big brains

Special Features
Pressing topics and trends

Table for One
An expert's week-long talk.

All Reader Posts
TPM readers discuss.

Book Club Calendar

Coming Soon



Nov. 30-Dec. 4



January 12-16



« Book Club ArchiveFull calendar »

Recent Reader Posts

All Reader Posts »





Masthead

Editor-in-Chief
Josh Marshall



Subscribe to TPMCafe's feed.
Subscribe to TPMCafe's reader blog feed.

Advertise Liberally
Share
Close Social Web Email

"To" Email Address

Your Name

Your Email Address