Comments on: Congress’ Bailout Plan: Will It Be Enough to Bridge Political, Cultural Divides? http://www.citizeneconomists.com/blogs/2008/10/01/congress-bailout-plan-will-it-be-enough-to-bridge-political-cultural-divides/ Citizen Economists is an online economics magazine written by citizen journalists. These ordinary citizens provide reports and commentary on the current events affecting the economics of the fields they work in. Wed, 08 Feb 2012 04:44:52 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Evelyn Black http://www.citizeneconomists.com/blogs/2008/10/01/congress-bailout-plan-will-it-be-enough-to-bridge-political-cultural-divides/comment-page-1/#comment-1696 Evelyn Black Sat, 04 Oct 2008 10:26:37 +0000 http://www.amateureconomists.com/blogs/?p=314#comment-1696 Thank you J.D.! So far: Scoundrel: 2 Savior: 1 Thank you J.D.!

So far:

Scoundrel: 2
Savior: 1

]]> By: J.D. Seagraves http://www.citizeneconomists.com/blogs/2008/10/01/congress-bailout-plan-will-it-be-enough-to-bridge-political-cultural-divides/comment-page-1/#comment-1691 J.D. Seagraves Sat, 04 Oct 2008 02:43:23 +0000 http://www.amateureconomists.com/blogs/?p=314#comment-1691 He was most definitely a scoundrel! :) He was most definitely a scoundrel! :)

]]> By: Evelyn Black http://www.citizeneconomists.com/blogs/2008/10/01/congress-bailout-plan-will-it-be-enough-to-bridge-political-cultural-divides/comment-page-1/#comment-1666 Evelyn Black Thu, 02 Oct 2008 18:02:26 +0000 http://www.amateureconomists.com/blogs/?p=314#comment-1666 Thank you for your insights into this comparison, Raymond. I fear that we are indeed in for the worst. A three page bill that initially looked like an all-time bad idea to lots of people now is over 400 pages long and loaded with pork. It looks to me like the choice at this point is between the Devil and the deep blue sea, and tomorrow Congress will choose again. Why do I get the feeling people like me will lose either way? It certainly won't be boring--I just hope my 401K doesn't disappear entirely by the time the dust settles. Thanks again for your comments! Thank you for your insights into this comparison, Raymond. I fear that we are indeed in for the worst. A three page bill that initially looked like an all-time bad idea to lots of people now is over 400 pages long and loaded with pork. It looks to me like the choice at this point is between the Devil and the deep blue sea, and tomorrow Congress will choose again. Why do I get the feeling people like me will lose either way? It certainly won’t be boring–I just hope my 401K doesn’t disappear entirely by the time the dust settles. Thanks again for your comments!

]]> By: Raymond http://www.citizeneconomists.com/blogs/2008/10/01/congress-bailout-plan-will-it-be-enough-to-bridge-political-cultural-divides/comment-page-1/#comment-1657 Raymond Thu, 02 Oct 2008 02:39:46 +0000 http://www.amateureconomists.com/blogs/?p=314#comment-1657 There is one difference I could point out. In 1929 Secretary of the Treasury Mellon, though he was a proponent of the boom that culminated in the stock market crash , saw the importance of allowing the market to liquidate the bad investments. He noted the successful application of a laissez-faire policy in previous crises. On the other side------ Hoover the president with then head of the NY Fed Harrison intervened with public works, credit expansion and attempted to raise wages. In fact he thought that low prices were causing the depression instead of the opposite. He subsidized industries to curtail production in an attempt to lift prices. He was cutting production (and employment) at a time when the exact opposite was needed. This marked the beginning of govt intervention in the economy that we now all take for granted. The dirty secret is the economy does not need to be managed. Just look at the mess we are in yet they prescribe a new and improved "management" concept. This time the Fed, the Treasury, congress and the President are all in agreement. Now that is groupthink of the highest order. Zip your wallets :) There is one difference I could point out. In 1929 Secretary of the Treasury Mellon, though he was a proponent of the boom that culminated in the stock market crash , saw the importance of
allowing the market to liquidate the bad investments.
He noted the successful application of a laissez-faire policy in previous crises.

On the other side——

Hoover the president with then head of the NY Fed Harrison intervened with public works, credit expansion and attempted to raise wages. In fact he thought that low prices were causing the depression instead of the opposite. He subsidized industries to curtail production in an attempt to lift prices. He was cutting production (and employment) at a time when the exact opposite was needed. This marked the beginning of govt intervention
in the economy that we now all take for granted. The dirty secret is the economy does not need to be managed.
Just look at the mess we are in yet they prescribe a new and improved “management” concept.

This time the Fed, the Treasury, congress and the President are all in agreement. Now that is groupthink of the highest order.
Zip your wallets :)

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