Donald Luskin at NRO writes on the administration's $700 billion bailout of the financial markets that, "To arrive at a principled view on this intervention, we must answer three critical questions: Is it necessary? Will it work? And even then, is it morally justifiable?"
Good questions, these. Go here for Luskin's thoughts on them.
I do not profess to know the ins and outs of the mess we're evidently in, but I do have a thought on any package put together to get us out of it. In my view any such proposal must have four elements: It must ensure that the taxpayers reap whatever profit is made from the investment of the $700,000,000. It must ensure that people working for the financial institutions that receive our largesse are fired and given no severance compensation. It must not help those who defaulted on speculative mortgages nor assist illegal aliens whose mortgages, apparently a significant number, are in default. The taxpayer should not be compelled to underwrite speculators nor buy houses for illegals. Thirdly, there needs to be a provision set up to establish a grand jury to investigate the relationships between the failed firms and Washington politicians, particularly Rep. Barney Frank and Sen. Chris Dodd.
Our economy is on the brink of total collapse in large part because politicians and bureaucrats pressured banks to give loans to high risk buyers, congress and the SEC refused to impose any constraints on the practice, and CEOs of major lending institutions were only too happy to go along because they were making a fortune.
None of these guilty parties should be absolved of their culpability for their derelictions, irresponsibility, and greed.
RLC
