Crazy Talk

It seems there is a petition going around asking Congress to not do anything rash to our economic system:

As economists, we want to express to Congress our great concern for the plan proposed by Treasury Secretary Paulson to deal with the financial crisis. We are well aware of the difficulty of the current financial situation and we agree with the need for bold action to ensure that the financial system continues to function. We see three fatal pitfalls in the currently proposed plan:

1) Its fairness. The plan is a subsidy to investors at taxpayers’ expense. Investors who took risks to earn profits must also bear the losses. Not every business failure carries systemic risk. The government can ensure a well-functioning financial industry, able to make new loans to creditworthy borrowers, without bailing out particular investors and institutions whose choices proved unwise.

2) Its ambiguity. Neither the mission of the new agency nor its oversight are clear. If taxpayers are to buy illiquid and opaque assets from troubled sellers, the terms, occasions, and methods of such purchases must be crystal clear ahead of time and carefully monitored afterwards.

3) Its long-term effects. If the plan is enacted, its effects will be with us for a generation. For all their recent troubles, Americas dynamic and innovative private capital markets have brought the nation unparalleled prosperity. Fundamentally weakening those markets in order to calm short-run disruptions is desperately short-sighted.

For these reasons we ask Congress not to rush, to hold appropriate hearings, and to carefully consider the right course of action, and to wisely determine the future of the financial industry and the U.S. economy for years to come.

We ask Congress not to rush…carefully consider…wisely determine…???

Don’t these people know there is a crisis?? As such the American people require, nay! the American people demand that Congress run around like a chicken with its head cut off.

To do otherwise is clearly the mark of insanity.

(h/t to Volokh)

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9 Responses to Crazy Talk

  1. Ropelight says:

    My grandmother claimed she actually witnessed the phenomenon, but she was known to tell tall tales from time to time. However, her biscuits more than made up for it.

    She also claimed to have seen a hoop snake.

  2. syn says:

    “Don’t these people know there is a crisis??”

    Apparently the crisis has been put on hold until Pelosi and Reid call Congress back from their two day holiday.

  3. Rich Horton says:

    Yes, this crisis seem to understand the importance of a good Washington D.C. cocktail party or two.
    Armegeddon can wait.

  4. MikeM says:

    Carefully? Wisely? Congress????

  5. Rich Horton says:

    Should be, Carefully? Wisely? *THIS* Congress????

  6. MikeM says:

    Rich, when was the last Congress that acted carefully and wisely?

  7. Rich Horton says:

    I bet you could find two years between 1994 and 2000 that weren’t too bad.

    While controlled by the Dems…hmmm…tough one…maybe the 1960’s.

    It’s rarer than a blue moon…but it can happen.

  8. Santay says:

    This crisis is only a warm-up for what’s going to happen when social security and medicare go belly up in the future. If what we’ve seen from DC so far is any indication we’re in deep yogurt.

  9. Tom says:

    Just wait until universal health care is added to the mix, and then watch everything tank!

    And then the yogurt will be waaaayyyyy past the expiration date…

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