There are better ways
September 21, 2008
Since when are Republicans for throwing money at a problem? When it means no one will really look at the underlying causes and force some responsibility on those who took financial risks.
For anyone interested in understanding the problem with the proposed bailout and possible alternatives:
Sebastian Mallaby – A Bad Bank Rescue – washingtonpost.com
The plan is being marketed under false pretenses. Supporters have invoked the shining success of the Resolution Trust Corporation as justification and precedent. But the RTC, which was created in 1989 to clean up the wreckage of the savings-and-loan crisis, bears little resemblance to what is being contemplated now. The RTC collected and eventually sold off loans made by thrifts that had gone bust. The administration proposes to buy up bad loans before the lenders go bust. This difference raises several questions.
Posted in taxpayer bailout
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