Diary

How about a REDSTATE ROUNDTABLE on the bailout and credit crisis

It’s not so much that I think the RedState Directors have a better knowledge than the rest of us on this issue but that they seem to be the only ones who can access the RedState servers consistently and reliably enough to make detailed and cogent arguments in support of their disparate opinions.

Besides, in fairness to all of them, they have all made very cogent and compelling arguments regarding the current credit crisis and whether or not the Federal government should bailout the market. And I say this even as I strongly disagree with some of the arguments (even some of the arguments of those whose position I ultimately agree with).

Please, how about a REDSTATE ROUNDTABLE on this and soon?As for the failure of the bailout plan itself, allow me to quote from some of my earlier posts. I am personally ambivalent to say the least. I think the idea of the government essentially purchasing over $700,000,000,000 in private securities and bad debt to be repugnant and a long term debacle. Indeed, let me call it what I really think it is: a significant step towards socialism.

I have consistently argued that the real solution to this problem is to loosen the capital markets by eliminating capital gains taxes; although the injecting $630,000,000,000 in the market is a good step, it also potentially weakens the already (IMHO) too weak dollar. But, unfortunately, my solution was not on the table.

The one very good thing passing the bailout bill would have “reassured” capital markets. Sometimes government “action” has a positive effect, even though the government action itself is not “positive”: the sort of political equivalent of the Hawthorne effect.

So while in the long-term, economically, I think it is a good thing that the bailout plan failed, short-term I think the economy losses.

But politically I must ask this fundamental question: were free-market-based solutions even considered?

This country is becoming socialist but it is not because the Democrats have nominated a Marxist as their Presidential nominee. It is because it seems that neither the present Republican occupant of the White House cannot defend capitalism.

And unfortunately, the Republican Presidential nominee decided to follow the current occupant of the White House down the abyss.

If he acts now, John McCain still has plenty of time to get his economic team together and present his own free market-based solution to the current credit crunch that does not go a great way to socialize our financial markets. The question is, does McCain have the guts, intelligence, imagination and vision to do it?