Making Sense Of The Financial Deal

House Republicans “rebelled“, eh? Maybe it’s because their constituents are burning up the phone lines in all out mutiny. The Republicans have acted like Democrats “lite” for years now. I have a newsflash for the Republicans, including McCain, about this whole bill: It feels wrong to fiscal conservatives and taxpayers generally.

My most liberal of liberal friends gloated in a Facebook message that Bush will be ushering in socialism and add an economic failure to his military failure.

The problem in America is cultural: a bigger portion of the populace lives beyond their means than ever before. Too much stuff, too much house (that isn’t worth the money paid for it), too, too much.

The great thing about America is cultural: risk-taking, the ability to make mistakes and survive them, the opportunity to start again. Americans get a do-over if they make a mistake.

The question facing Congress and the President is this: Does Wall Street deserve a do-over? Does Congress deserve a do-over? Their stupid regulations forcing bankers to loosen credit when people who were very bad bets caused this problem. Why should Americans trust Congress with the solution? I think that’s where the do nothing sentiment comes from.

Will business start-ups be harmed by the contraction in credit? Yes. Will businesses fail? Yes. Will people lose jobs? Yes. Especially employees of small businesses.

It’s no wonder Congress has themselves tied up in knots. There are no guarantees no matter the choices. And there are great risks no matter how it’s handled.

The American patient is sick. Any intervention could potentially make it worse. Lack of intervention, could make it worse, too.

Cross-posted at MelissaClouthier.com

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