Bush has fouled up everything he has touched. I presume that he and Paulson see a genuine crisis, and it seems to me that they are right. A lot of big financial institutions are going tits up in short order. And as I see it, it is the long deregulation sought by the likes of Friedman, Hayak, Reagan and Greenspan and their ilk till it was elevated to the point of religion. Their version of economic theory has always struck me as bullshit, it being based on the assumed rationality of individuals and groups. I know enough about human nature to know that any logical system based on the assumption that humans will act rationally to improve their interests is kidding itself. Reducing reserve requirements, a particular Greenspanesque shit for brains mantra led to overleveraging.
Bush may in fact be sincere in requesting the bailout, but he sure as hell doesn’t understand it.
I’m against a bailout that doesn’t get equities to back the government guarantees that protect the taxpayer. And I’m all for eliminating any company from consideration that doesn’t cut the top executive pay to companies that apply. If the execs are unwilling to make a modest personal sacrifice to a few million a year instead of hundreds of millions, they aren’t the kind of people I want to lend money to. Iaccoca cut his salary when he asked for a bailout.