Money for idiots – we have no choice
David Brooks laments the harsh reality that the bank, auto and mortgage bailouts are rewarding too many people for stupid behavior. Yet, if we want to stop the downward spiral, we have no choice.
It makes sense for the government to intervene to try to reduce the oscillation. It makes sense for government to try to restore some communal order. And the sad reality is that in these circumstances government has to spend money on precisely those sectors that have been swinging most wildly — housing, finance, etc. It has to help stabilize people who have been idiots.
Actually executing this is a near-impossible task. Looking at the auto, housing and banking bailouts, we’re getting a sense of how the propeller heads around Obama operate. They try to put together programs that are bold, but without the huge interventions in the market implied by, say, nationalization. They’re balancing so many cross-pressures, they often come up with technocratic Rube Goldberg schemes that alter incentives in lots of medium and small ways. Some economists argue that the plans are too ineffectual, others that they are too opaque (estimates for the mortgage plan range from $75 billion to $275 billion and up). Personally, I hate the idea of 10 guys sitting around in the White House trying to redesign huge swaths of the U.S. economy on legal pads.
But at least they seem to be driven by a spirit of moderation and restraint. They seem to be trying to keep as many market structures in place as possible so things can return to normal relatively smoothly.
And they seem to understand the big thing. The nation’s economy is not just the sum of its individuals. It is an interwoven context that we all share. To stabilize that communal landscape, sometimes you have to shower money upon those who have been foolish or self-indulgent. The greedy idiots may be greedy idiots, but they are our countrymen. And at some level, we’re all in this together. If their lives don’t stabilize, then our lives don’t stabilize.
There will be those who gripe about this and try to whip up anger and opposition to the administration’s efforts, but they won’t offer practical alternatives. They might call for the banks, automakers and homeowners to go bankrupt, but they probably don’t mean it. If they do, it probably means they have no clue of how bad it can get if they get their wish.
I have to admit that a part of me wishes that the Government would simply put together a massive social spending bill to assure that all the people ruined if these banks go out of business, would be supported through the tough times. that means millions of working folks and pensioners would get welfare to get throught this all but that the banks could go ahead and fail.
the main benefit of this is that right now, OUR money is going to the same people who organised this con job to rape us and rob us blind. They did so precisely because they knew that once they stole the money, that the US govt cannot afford to let pensioners suffer, whose money was used and stolen by the banks
I mean let’s face it, for every guy like Madoff, who we know about, there are dozesn of others like him, who used similar games, like derivatives, to siphon our money from us. They guys are all getting paid off, with our money.
Gerardo–
Here’s what no one is talking about. 94% of us have never missed a mortgage payment. These 6% retardo goat hearders are the ones who have NEVER been responsible their entire lives. Helping these absolute imbeciles out will solve nothing– they’ll be in the same predicament 6 months to a year later– these people are f’ups- they always have been and they always will be. How many time are we going to have to get them out of the mess the created?
I don’t remember the details, but a lot of these idiots were already helped and 6 months later they were back in trouble.
Prediction time- the vast majority of the 94% are PISSED that we are going to be helping these f’tards. This does not bode well for Obama, which, of course is a GREAT thing.
It’s time to cull the heard.