Wednesday, September 24, 2008

Schumer doesn't get it

Sen. Schumer is trying to reduce the amount of the bailout from one lump sum of $700bn to an initial installment of $150bn with the potential for more later. He knows, at least at some level, that the bailout is about confidence, yet he seems to be doing all he can to undermine confidence in the program.

Let's say we do this on the installment method like Schumer wants. The possibilities are...
-It could fail to give the market enough confidence and sputter out immediately.
-It could work at first, giving opponents firepower to oppose later installments, which may or may not collapse the program later.

I don't like how that games out. I think that even if it works at first, failure to renew -or even uncertainty about renewal- will restart the death spiral.

2 comments:

Anonymous said...

What are your thoughts on Mccain pulling out of the debate to save the economoy?
Matt

Sockless Joe said...

I'm mostly confused. Clearly there is a case to be made for continuing to do the job of Senator while the campaign is raging, but it's not clear to me that McCain will either help better the bill or accomplish any political goals in this self-martyring.