Just Say, "NO Bailout!"

Last night the Senate approved a "new and improved" bailout bill that will save our economy from it's "inevitable Apocalypse". Today the Senate is urging the House to pass the new bill.

This morning, President Bush issued a statement applauding the Senate's actions. "With the improvements the Senate has made, I believe members of both parties in the House can support this legislation," Bush said. "The American people expect — and our economy demands — that the House pass this good bill this week and send it to my desk."

According to NPR.org, “Lawmakers and the White House are focusing on the economy and what small-business people and ordinary Americans have at stake.”

Yeah right.

Lawmakers and the White House are not listening to the American people. They are not listening to 70% of Americans who are screaming, “NO BAILOUT!” They are not listening to the over 200 economists who recently signed a petition opposing the bill.

Normally I support President Bush but $700 billion to bailout corrupt business? What??? It's at times like these that I try to ask myself, "What would Regan do?"

The people at The Heratige Foundation have asked the same question. Here is their answer, a number of articles explaining how "Reganomics" could solve our current economic "crisis". This morning I read "What Should Be Done About the Financial Markets?" written by Stuart M. Butler, Ph.D., Alison Acosta Fraser, and James L. Gattuso.

After reading the article, I couldn't agree with Butler, Fraser and Gattuso more. What would Regan do? Well for one thing, I'm sure he would NOT give our tax money to bad business! When a business is making stupid decisions, there must be some accountability. Businesses with bad practices need to fail so good business can succeed. Our economy will never be great unless there is a return to honesty and accountability in business.

Furthermore, our economy will never be great unless Americans learn to be honest and accountable in their personal finances. The lifestyle of the average American (myself included) is excessive and extravagant and can not be supported by credit much longer.

Yes, recession is inevitable. It doesn't take a rocket scientist to see that the market must adjust. It’s basic physics; “What goes up must come down.”

John Cochrane, a University of Chicago professor who organized the economist petition against the bailout bill said that, "Yes, credit is harder to get. If you want a loan, you'll face higher interest rates." However, Cochrane says the economy is, "Sick, but the patient is up and walking around."

Cochrane continues, "We have an unprecedented seizing up for credit markets and, as yet, no depression and no recession." Cochrane pointed out that we still have a pretty steady gross domestic product and though unemployment is up, the figures are no where near the 1 in 4 unemployment rate during the Great Depression. He says the "Apocalypse" the government is predicting will be more like a "typical recession."

Cochrane likened the bailout to, "...a boating outing and some of the boats are sinking. So somebody says, 'I got an idea. Let's blow up the dam and drain the lake.' OK, that will keep all the boats from sinking — not just the three that are in trouble." Basically, Cochrane says the bailout is a "broad fix for a narrow problem."

I say, "Give me a downward spiral, give me recession; I can handle that!" What I can't handle are more taxes and bigger government. If you loathe taxes and big government like I do, please contact your local congressperson NOW and tell them to just say "NO" to the bailout.

Here's the full article, "Bailout Clash: 200 Economists vs. the Senate" by David Destenbaum and another good aricle, " No Rescue? Economists Explore What's Next" written by Joshua Brockman.