I'm not sure what bailout plan Norm Coleman's heard about, but it sure sounds great:
U.S. Sen. Norm Coleman said the massive government bailout of failing financial institutions is not only necessary but could make money for the federal government."The government could make 10 or 20 times what it pays on this, possibly," Coleman said during a campaign stop at Christy's Cafe in North Mankato Saturday morning.
Wow, that sounds like a great deal. The government could be rich!
People who actually know what they're talking about, however, disagree.
...Mr. Paulson insists that he wants a "clean" plan. "Clean," in this context, means a taxpayer-financed bailout with no strings attached -- no quid pro quo on the part of those being bailed out. Why is that a good thing? Add to this the fact that Mr. Paulson is also demanding dictatorial authority, plus immunity from review "by any court of law or any administrative agency," and this adds up to an unacceptable proposal.
In current form, the "bailout" looks like a blank check, with little-to-no accountability to the party footing the money...taxpayers.
The larger irony here is an implied point buried deep in Coleman's speculation: that the government can administer a large-scale financial program more efficiently than the private sector. The analogy to health care isn't nearly perfect, of course. But it's remarkable how much faith in the government Republicans can muster once the profit dries up.
Meanwhile, don't miss invaluable updates over on Krugman's blog as the crisis continues to unfold...
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