A Conservative Case for the Paulson Plan
By Robert T. Miller
As I write late on Thursday evening, some conservative Republican senators and representatives are opposing the Paulson bailout plan because they think that the government should not intervene in the market—that it is better to let financial institutions that took risks that turned out badly for them bear the consequences of their actions. As one of the freest of free marketeers, I want to explain why that thinking is wrong-headed.
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1 comment:
I essentially agree with this.
It is better to let financial institutions bear the consequences of their mistakes, however, when government is involved in those mistakes we're left on the horns of a dilemma. The GSE's - Fannie Mae and Fredie Mac - created paper that had an implied government backing. That obviously played a role in all this.
That said, just because I can agree some government action is needed that doesn't mean it should be this bill or rather, the bill we had when Mr. Miller wrote this.
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