1) From the New York Times, “A Fine Mess” by William Kristol 2) From the American Scene, “Welcome to History” by Jim Manzi Is it a sign that we truly are approaching the End Times that the Boss and John Conyers agree on something of vital importance? Both find the administration’s plan to give Henry Paulson a $700 billion blank check to buy up all the country’s bad mortgage debt in all of its many guises profoundly disturbing. Kristol writes:
The Wall Street Journal finds Conyers concurring:
One must ask precisely what the administration is up to here. Was the initial deal sheet that granted Paulson such sweeping powers a mere “jumping off point” from which the administration could begin wrangling with Congress? Or did the administration sense Congress’ collective terror and figure individual Congressmen would just go along with whatever Treasury proposed? After all, Barack Obama hasn’t exactly led from the front on this matter (he’s still trying to decide what he thinks about last week’s AIG bailout), and John McCain’s clumsy efforts to offer anything substantive last week were disastrous. The typical, cautious senator has probably decided it’s in his best interest just to stay out of the way of this particular locomotive and rejoin the fray once the blame game has commenced. So what tweaks does the Paulson “plan” cry out for? The always insightful Jim Manzi puts it plainly and simply:
Add proper oversight to make sure Treasury is disposing of its responsibilities in a capable manner, and we’ve got ourselves a plan. Everyone understands the need for prompt and serious action to make sure the American financial system doesn’t go belly-up. Well, almost everyone – you can find the stray Ron Paul-types out there who would rather see a Great Depression redux than have their libertarian principles compromised. While most of us find the thought of a massive bailout unpalatable, the thought of the American credit markets seizing up sucks far more. But thinking people should still ask whether granting a $700 billion blank check to Hank Paulson is the proper antidote. The many individuals I’ve spoken with who have a serious understanding of financial markets have universally expressed their minimal to middling regard for Secretary Paulson’s job performance. What’s more, since Paulson is a banker and not a trader, he doesn’t seem like the guy you would give $700 billion to and say, “Go have some fun in the world’s most complex securities market.” Certainly not without proper statutory and congressional supervision. In the spirit of coming together at a time of crisis, I suggest we all applaud Treasury’s aggressive approach to staving off a true financial catastrophe. But that doesn’t men we have to suspend common sense and prudence as we look for the best way forward.
