Supporter of bailout package changes his mind

Before the House vote on Monday, John of Powerline tells us, he reluctantly supported the bailout package. But now, he writes:

I’ve changed my mind. The bill failed in the House on Monday, and the sky didn’t fall. Those who predicted doom are a bit like the cartoon characters who don white robes and climb mountains carrying signs that say “the world will end tonight.” They feel silly when the sun comes up the next morning….

In all of the arguments that the administration, Congressional leaders and Presidential candidates have made in favor of the bailout proposal, the consistent theme is that the bailout is better than doing nothing. That could well be true. But I have not yet heard a single word of argument from the bailout’s proponents as to why that plan, which can fairly be described as extreme, is better than an insurance program, or a loan program, or a combination of regulatory initiatives to free up credit, or other alternatives that may be devised by banking experts.

Posted by Lawrence Auster at October 02, 2008 02:07 AM | Send