The bailout

Okay, now that I've started commenting on economics I can't stop. The news yesterday was that the bailout is turning out to be a hard sell in Congress. Again today, Ben Bernanke (Chairman of the Fed) is testifying that action needs to be taken quickly.

I understand it is important to do the due diligence when passing a plan which involves $700 billion of tax payers money. It seems the hold up is that representatives think the plan is too sweeping and needs more safeguards. Their constituents don't want their tax money going to rescue the Wall Street high rollers. [As I mentioned previously, that's not what this plan will do.] They want to tack on additional regulations such as a salary cap for executives. Last time I checked the salary of executives is not what caused the problem. If they start passing regulations like that they will be taking away the incentives which make our free market work.

Who do I want setting economic policy? Representatives in Congress who, based on their comments in the press, don't appear to not have vast economic understanding. Or Ben Bernanke, the chairman of the Federal Reserve Board who has no special interests in Wall street and who is an expert in macroeconomic policy. No one is perfect and probably no policy is perfect but my vote is with Bernanke.