Man oh man do I loath Congress. They've gone and reached an agreement on the so-called "$700B bailout" (which some have estimated will reach closer to $1T) and then made the announcement after midnight, guaranteeing minimal coverage and reaction. This just reeks of bad politics.
Economists don't even consistently agree with the necessity of the bailout plan:
http://www.marginalrevolution.com/marginalrevolution/2008/09/substitute-brid.html
http://www.marginalrevolution.com/marginalrevolution/2008/09/is-a-potential.html
Some point out that Warren Buffet favors it, so it must be ok. Well, maybe, except he's going to do what's best for his own personal financial interest, right? What's best for him is not necessarily what's good for the other 90% of the country.
More concerning is that this bailout completely undermines any tax cuts that either presidential candidate had discussed thus far. It effectively nationalizes a huge segment of the mortgage industry. It adds a tremendous burden to the taxpayer, despite the Fed handing out money like it's free.
The good news is that there is still time. The bill has not been written down yet, and thus it has not been voted on. It's time to call Congress and demand hearings. This is not a time for swift action with little forethought and discussion. Quite the opposite, this is time for careful, deliberate, well-conceived actions. Do not let the government drive itself into insolvency, with the net effect of triggering a complete collapse of the country. This plan is ill-conceived and does not benefit the average person. Worse, it will guarantee at a minimum current tax rates, if not a major increase in taxes, which will further reduce consumer confidence and spending.
Call Congress - demand accountability to the people, not the corporations!
