Mounting frustrations over the slow motion train wreck that emerged as
"the Sub-Prime Lending Crisis" drives this writer to comment ,
as an alternative to screaming.
I thought the Congress and Administration did a Yeoman job in banging out a response to the market crisis. They generally put aside, for the moment, the question of "WHO CAUSED THIS BUBBLE?". They addessed a quick solution, rather than underlying causes. The recriminations will come later.
The current proposal, which narrowly failed this morning in the house vote,
had some input from all the main parties: Putting up cash though the Treasury, as the Administration had proposed. Limits on Golden Parachutes and equity stakes in any saved companies, as demanded by the Democrates. Some attempt at protections for taxpayers' money, demanded by both parties in the House. The transparency
requirements were a good feature.
Whether the proposed bailout would have worked, long term, was problematic.
It would be been effective in quelling the panic in the Markets. The ultimate
outcome would have been dependent on the scope of the problems in the
mortgage markets. This is still playing out.
If the Markets continue to swoon, the lawmakers will be obliged to
fashion a revised bill that can pass.
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