Next stunt, please!

A mostly political Weblog.
Oct. 11 2008 8:38 PM

Next Stunt, Please!

Plus--Can I vote for McGovern?

(Continued from Page 16)

Now a Ford Maverick would be a cool car for McCain to own. (Rear drive. Famously robust. Old. Ironic.) Alas, it appears to be just a cheap graphic device by Huffington Post. ... Of the 13 vehicles McCain does own, only the 3 electric golf-cart-like things are at all interesting. Even HuffPo likes them. ... The others aren't even ostentatious or obnoxious. Where is a Porsche Cayenne Turbo when you need it? ... . 9:53 P.M.

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Bail Mary! Newt Gingrich makes at least one good point about the Paulson bailout plan:

Implementation of the Paulson plan is going to be a mess. It is going to be a great opportunity for lobbyists and lawyers to make a lot of money. Who are the financial magicians Paulson is going to hire? Are they from Wall Street? If they're from Wall Street, aren't they the very people we are saving? And doesn't that mean that we're using the taxpayers' money to hire people to save their friends with even more taxpayer money? Won't this inevitably lead to crony capitalism? Who is going to do oversight? How much transparency is there going to be? We still haven't seen the report which led to bailing out Fannie Mae and Freddie Mac. It is "secret". Is our $700 billion going to be spent in "secret" too? [E.A.}

Some other points!--

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1) Gingrich claims it's dangerous to push a dramatic long-term solution in response to a shorter-term "crisis." But of course he uses the crisis to push his own long-term solution, a "zero capital gains tax." I personally think we need to respond to this crisis by immediately providing universal health care while postponing indefinitely all plans for "comprehensive immigration reform" and "card check" unionization. Racial preferences in college admissions and contracting should to be suspended for 15 years while the government creates a $700 billion entity to fund charter schools and another of similar size to finance public works projects that provide unskilled, last-resort jobs. This no time to rush into untested schemes;

2) I don't have to imagine what a future administration might do with the unchecked power to spend $700 billion, potentially rewarding friends, etc. I'm worried what the current administration would do. Paulson seems like a straight shooter--but these are Bushes we are talking about. They value loyalty and keep lists. The President tried to put his personal lawyer on the Supreme Court. Enough said. ...

3) Gingrich worries about "a one-week solution that becomes a 20-year mess." I don't see the danger of a 20-year mess. It's only a trillion dollars. It won't take 20 years to spend.

4) Sebastian Mallaby and Paul Krugman both make plausible cases against the bailout. Unfortunately they seem to partially contradict each other.

Krugman (like Joe Nocera) wonders what price the government will pay for the toxic assets its buying--will it drive a hard bargain, paying no more than"fair value"-- in which case it wouldn't seem to be doing much to help the firms it's buying from. Or will it overpay, in effect lavishing a taxpayer windfall on Wall Street screw-ups without asking anything in return? The scheme only makes sense, Krugman notes, if

this is mainly a liquidity problem. So if the government stands ready to buy securities at "fair value", all will be well.

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