Editorial: Bailout remains a bad idea
Published 8:47 am Monday, September 29, 2008
Much of what is being said by politicians about the $700 billion bailout is in praise of the immediate rewards. However, economists who believe in letting markets work will tell you all this and past bailouts only prolong the situation. The market needs to go down before it rises again. It needs to correct itself before it can rise again.
The proposed bailout merely will extends the time for the U.S. market to limp along in its mediocre state before finally taking the drop it needs to take.
Putting the taxpayers on the hook for $700 billion is no way to use our money. Wall Street and global investors still demonstrate doubts about the effectiveness of the super-sized bailout package.
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The problems are systemic. That much is clear. Yet this proposal before Congress doesn’t address the systemic problems. It simply throws money at the market.
We urge Congress to pass regulations to benefit the markets — regulations that will comfort investors about the long-term success of their investments.
This package is deeply unpopular among Americans, too. Perhaps Congress should listen to the people.