TightyRighty.net

Obviously this is a hot topic being debated around the country and world.  From what I hear, citizens (US only – the others don’t matter) are strongly opposed to this bailout. 

I think this reaction is due to the framework of the discussion.  It is being discussed as a bailout of companies (Merrill Lynch, Lehman Bros, etc) vs a bailout of the system.  Most folks are thinking that these companies got themselves into this mess, let them get themselves out (without gov’t intervention).  This makes sense and is easy to understand.

However, the crux of this issue is the overall impact it is having on credit markets, and the very real ripple effect it is and will have on the economy at all levels (I am loathe to say “both Wall Street and Main Street”).

That said, I think that this deal needs to get done.  However, it should be done right – focused strictly on the credit markets with no pork.  The deal also needs to maximize bailee cost and minimize taxpayer cost.  I think the price of participation should be sufficiently high so as to make companies think hard about whether they desire to eat at the Taxpayer/Gov’t trough.  How about 20-25% ownership in your company if you want to participate?  That would make companies think twice and would give the gov’t enough equity clout to manage the great bogeyman in this issue – executive compensation.

Regarding pork – there should be absolutley none.  So the House needs to do some work to make the Senate bill work.  I am a cyclist – you can tell that from my web site.  However, it pisses me off that the Senate bill includes a provision related to reimbursement of bicycle commuting expenses.  How the hell does this relate to a bailout plan for the credit markets??  No wonder congress has single digit approval ratings!