On The Über-Bailout

Yea!  We made it through the weekend without any major financial failures!

Instead, it sounds like our fearless leaders and pundits (professional and armchair alike) are discussing Secretary Paulson’s request for $700 billion to buy toxic assets out of financial institutions’ portfolios.

Reaction seems to be focused in two realms – the “no bailouts” camp and the “what other goodies can we add to the fun".

I actually subscribe to neither position.  I’m kind of sad that mass stupidity has lead to this failure of the somewhat-free market, and I accept that “something big” would go a long way to at least encouraging stability in the market, which would (if nothing else) alleviate irrational panic behavior.

I’m also interested in hearing if $700 billion is the cost, or just the potential expenditure from which there might be recoveries, since those toxic assets most likely aren’t worthless.

I am disappointed that more folks aren’t also considering how this magnitude of deal impacts the toxic level of national debt we already carry.  I don’t mean to support the “no bailout” school of thought…but I would feel more comfortable with the feds intervening this way if it were accompanied by some good public debate on the national pastime of spending more money than we have.

But that would be sensible.  And “sensible” seems to be woefully in absence these days.