The bailout.

The bailout.

The bailout won't recapitalize the banks. It just bails out reckless bankers, lenders, and investors at the top of the food chain. Economist Nouriel Roubini says, "This plan does not even achieve the basic objective of recapitalizing undercapitalized banks."

It could be done much cheaper. $175 billion instead of $700 billion. Buying the toxic assets is just one way -- the most expensive and the most likely to be abused.

There's a JPMorgan sized loophole. It allows JPMorgan, the buyer of the collapsed Washington Mutual, to sell WaMu's toxic debt to the government at a profit. That's downright corrupt. And since the government brokered the sale of WaMu to JPMorgan -- selling it while the CEO of WaMu was on an airline flight -- it looks like the loophole was created just for JPMorgan. (Note: WG did some research and JPMorgan has been involved in a lot of scandals.)

It doesn't solve the mortgage crisis that sparked the melt-down. There are no provisions for home owners at all. So the mortgage crisis will continue for the rest of us, dragging the economy down.

According to Roubini, "Congress did not consult any of the many professional economists that have presented alternative plans that were more fair and efficient and less costly ways to resolve this crisis."

I don't get it. You go to a doctor when you have a medical problem. When you have an economic problem, you talk to an economist. Don't you?

We have to do something, and I don't oppose government intervention at all. But this bails out the wrong people and won't recapitalize banks. Which is the point.


ETA: Oops. Forgot to close a tag and just noticed. Sorry about that.

Yes, future historians, we *did* turn a global economic crisis into a fanfic challenge.

Personally, I enjoy doom and gloom if I happen to be right. /Snape-voice

But the normal people on my friendslist might enjoy a break from all the, hmm, political excitement. You are therefore invited to play in the Multifandom Bailout Challenge.

As very_improbable describes it: Yes, future historians, we *did* turn a global economic crisis into a fanfic challenge.

And we should be proud.