Urbin Report

Tuesday, September 30, 2008

Dr. Pournelle on the bailout bill

The wise doctor says:

According to Pelosi the entire crisis is due to the Bush administration, and by voting for the bill the Republicans would agree to that. Nothing about CRA and affordable housing. Nothing about the war which Congress approved. It’s all the fault of the free market.

I am torn between thinking this is childish, and fury at this narrowminded action.

The problem is simple: no one is sure that a bailout is needed. If a bailout has the effect of empowering those who caused this mess to begin with, then it might make things much worse; and Pelosi’s triumphant cackle fixing all blame on Bush does not generate great confidence. If the official Democratic Party view is that there was nothing wrong with the notion of setting up Fannie Mae and Freddie Mac and pushing banks to make bad loans so that we can have more affordable housing and more home ownership, then it is a clear demonstration that the Democrats either do not know, or do not care, what their contribution to this mess has been.