The New York Times has the story about how the government decided to present a plan to buy $700 billion of troubled mortgage assets.
I can’t see how this bailout makes anyone happy, except for the people being bailed out.
On the left, there is the sentiment that fat cats are being relieved of the responsibility for their poor decisions, at the expense of taxpayers. Lefties regret this because they could use that money for other socialistic programs they want to pursue, like taking over the health care system.
On the right, many economically libertarian folks like myself are also appalled that the free market isn’t being allowed to do its magic in punishing bad decisions — which means rewarding people who made good decisions, and thus maximizing efficiency in the system as a whole. And we’re depressed at a creeping socialism that no longer seems to be creeping.
One thing seems certain: it isn’t helping John McCain. He had better get himself a winning strategy on this issue, or he can kiss this election goodbye.