People vastly smarter than me say that the Paulson bailout plan is a necessity to prevent a market meltdown.
I trust these people.
But I also know that people smarter than me got us into this mess and the Democrats will not allow us out of this mess without creating another mess of some sort down the road.
I have no bone to pick with those who support this plan. I understand and go into this with eyes wide open that doing nothing may have short term catastrophic effects on the market.
I also know that if we do the plan, we may be in a recession for a decade.
Friends, forests grow again after a forest fire. Markets grow again after a crash. Neither will grow and neither will thrive when suffocated. The Democrats, should this plan pass or not pass, will suffocate the market.
I cannot fault those who support this plan because some do it to mitigate Republican losses — they think doing nothing will make the situation so bad that the GOP will be swept so far out to sea there won’t be enough to stop a President Obama. Some do it because they think the repercussions would otherwise be disastrous for the economy.
The Left wants this deal to not pass because they think a total collapse can finally bring about the socialist revolution they crave.
I don’t think that will happen. I do think it will reward bad behavior. I also think, looking at polling right now, it will be President Obama’s Treasury Secretary dealing with this and I do not trust the decisions that person, whoever it might be, will make.
So I cannot support the plan, but do not fault those of you who support it. It may very well be necessary. I just do not think so. And I think we will spend years reaping rotten fruit because of it.