The Eternal Recurrence of the Bailout Bill

Jesse Walker | October 1, 2008

The New York Times reports:

Senate leaders scheduled a Wednesday vote on a $700 billion financial bailout package after accepting tax breaks and a higher limit for insured bank deposits in a bid to win House approval and send legislation to President Bush by the end of the week.

Top lawmakers said the Senate proposal, worked out after a day of behind the scenes maneuvering, would include tax breaks for businesses and alternative energy and higher government insurance for bank deposits.

Two responses:

1. What does alternative energy have to do with any of this?

2. "A higher limit for insured bank deposits"? Apparently, the Senate learned nothing from the S&L debacle. But hey, if you're already creating moral hazards, why stop?