First of all, I'm not concerned with popularity. That is not being anti-social but instead I don't follow the trend thinking of the mass. While I know that the Bailout is unpopular, and I'm angry that there is a discussion to reward moral hazard at the top and at the bottom, I still know that "breaking the buck" goes beyond my account status.
"Breaking the buck" would put people out of work, cause even more foreclosure, and in effect be worse than the prospect of rewarding the stupidity and greed that got us in this mess.
"Got us in this mess" is a good statement as it begs the question, who is to blame?
Well really it was an oversight failure of regulated markets. And there needs to be a Bretton Woods III. I don't think there will be much public acceptance 'as most are ignorant' until we see some punished parties and new rules.
But really the post today was to state that as 'imperfect' as the proposal was, as much as one needs to hold their nose as this proceeds, I still support the concept of authorization of the FED and Treasury to intervene to advert systemic contagion and to bundle NPL's.
What has not been discussed is the need to reform energy policy as it affects dollarization and our real economy. What has been missed is the circumstance where we are hostage to the market's inertia of tradition and outdated assumptions.
The one assumption not discussed is what happens to leveraged debt if the costs of production (growth) is connected to declining megafields.
So for a stop-gap programme, yes I agree still to the bailout. But the real litmus of reform and transformation will be after the bailout and when the energy bill is debated.
I see little progress and feel that the public is poorly served by oversight and regulation in the markets. I see nothing in the means of a energy policy at the state level in Maryland, say compared with North Carolina.
As this unfolds remember that this bailout solves NOTHING. It just is an expensive down payment on increasingly expensive time.
But what is encouraging is that Buffet sees this, and has gone after CEG and is buying into Goldman. Really, at the end of the day it will be people like Boone Pickens, Buffet, and small investors who despite the damage inflicted by DC who will prevail.
Irrespective of the PUC policies of Maryland that inhibit investment, cause higher energy prices, and frankly look ridiculous compared to RTP/NC/DUKE again despite all the poor policy, the path to progress or the adverting of a bubble cannot be avoided.
Energy is at the core of this economy. If oil was at historic lows the economy would be expanding. And is the US cannot meet the challenge of having the lowest electrical rates globally, our manufacturing base and position of leadership in the global economy is doomed.
Yes I still support a bailout, but the costs of this stop-gap plan is not a solution.