Thoughts on the Bail-Out

The Bush-Pelosi bail-out passed the House on it second try, its cost now swollen from $700 billion to $850 billion.

The Democratic Party confirmed its status as run by limosine liberals — an upper/lower class alliance against the American middle class

The Republican Party confirmed its status as being run by idiots. While most House Republicans still voted against the Wall Street Bailout, the Republican leadership did everything possible to conflate the economic mismanagement of Democrats with the economic mismanagement of the GOP.

John McCain foolish suspended his campaign to support the bankrupt Bush line, and worked as hard as he could to undermine the House Republicans.

Barack Obama dutifully followed his Party’s leadership in its attempt to nationalize as much real property in the country as possible.

The Republicans demonstrated no ability to handle a complex economic crisis.

The Democrats demonstrated their known ability to manipulate markets, wreck important institutions, and hurt the country.

Whatever the specific fates of the Wall Street firms and their Washington men, it’s hard to think that the US financial system is not irreparably wrecked. What we had before is unlikely to come back. The executive branch sees as its purpose protecting investors from risk, and the legislative branch apparently has ignored the lessons of the 1990s and regressed to economic policies that would be familiar to Adlai Stevenson.

That all said, the candidate with the best economic policies at this point appears to be Barack Obama — prsuming he is lying on international trade, the capital gains tax, and so on. The lack of national health insurance means that the U.S. is the only industrialized country where losing your job means losing your health insurance: this is a systemic break on free trade and creative destruction.