One of the reasons we entered the Great Depression was that too many elected officials didn't know what to do. so they said, let's side with the angry constituents and do nothing, let the 'weak' businesses fail. unfortuantely, there was a cascading effect that brought most businesses down.
I was long a critic of Bernanke. Especially when i didn't realize the levity of this economic situation. Turns out, he is the foremost expert on why we ended up in the Great depression and how to avoid another. So far, he is operating by the book, with one slip-up; allowing Lehman to fail. But that was purely schoolyard politics for Paulson and his old adversary.
Unfortunately, we still have too many politicains that know how to win elections, pander to the most people, but don't know JACK SQUAT about statesmanship and how to runa country, certianly not the economy.
Whether we like it or not, we MUST pour money into the economy. If we can do it while resurecting the manufacturing arm, then we will have a sustainable recovery that can generate profitable tax revenue. In addition, these are loans, not grants or gifts. Theoretically, they will be paid back. that is, unless the recovery fails or some dumbass politician in the future forgives the loans.
Here's the one problem, Hoover thought it best to insert any government assistance during the GReat Depression at the corporate level, assured that the help would trickle down to the people. It didn't. Think of our current problem like a totem pole. The mortgagees are on the bottom, struggling under the weight of all the people in line above them; banks, mortgage holders, FMNA and FHLMC bondholders, etc. so here we are, inserting the bail-out money in the middle of the totem pole. What will eventually happen to the people on the bottom with the added weight of the bail-out of their heads? Oh, by the way, those people on the bottom are the consumers. So if they are left out to dry, who's going to buy our products, the Chinese?
The most sensible solution seemed too much like socialism for any politician to adopt. but it was also the most likely to work. Offer assistance tot eh troubled homeowner. Don't let them off the hook, but insert money so they can defer the impact of the loans. Partial loan forgiveness has the phantom income tax problem that wouldn't fix anything. But helping everyone keep their houses works for everyone. the money flows right up the chain immediately to the banks, etc.
I guess corporate socialism is acceptable, but not public socialism. Regardless, we are in the for the long haul. And for those of you Republicans who have not switched tot eh Independent party yet (or are RINO's that refuse to leave the party) just remember who has been asking for all the bail-outs. . . it's our corporate leaders who adopted our beloved 'let the free markets dictate themselves' matra and turned it into the greatest corporate social money grab in the history of our country.
Now people from any party can argue the tenant differences of the parties, but you cannot deny the disgusting hypocracy of having watched bush constantly talk-up the need for free markets with little or no government intervention, basically BEGGING the government to intervene, basically extorting $3/4 Trillion out of the government like it was a Wild West bank heist and expected no oversight at all. My friends, we are watching future felons in action. Hollywood couldn't write a political-tragedy like this.
Peace. . . and let's drop the OSO-style threats. There is no intellectual argument that can be solved by getting physical; unless it's using the Jedi mind Trick to nail a hooker.