Read Up on the Bailout and More Before Monday's Opening Bell Signals More Losses!

Nick Gillespie | October 12, 2008

Recent reason coverage of the bailout.

And go here for Hit & Run posts on the topic.

Abandon All Hope: Everybody's running against the bailout, but nobody's serious about killing it. David Weigel 

Rescue or Waste?: Why the bailout isn't working. Steve Chapman

Private Accounts Still Make Sense: Why the market meltdown doesn't negate the case for privatizing Social Security. Radley Balko

Building a Better Bailout: How Washington could have helped the market at no cost to taxpayers. And what it should do if it's hell-bent on spending $700 billion. Veronique de Rugy and Philippe Lacoude

Economist Russell Roberts on What You Need to Know About the Bailout (and Why You Should Be Really Worried:

The Winner of Last Night's Debate? Washington: Both candidates embrace central planning as prudent economic policy. Matt Welch

What Would Mises Do?: Confessions of a free-market, anti-bailout operator. Matt Kibbe

The Roots of the Crisis: How did Wall Street get into this mess? Michael Flynn

Does It Take a Panic to Stop a Panic?: The Wall Street bailout and the perils of bipartisanship. Jacob Sullum

An Expert-Induced Bubble: The nasty role of ratings agencies in the busted housing market. David M. Levy and Sandra J. Peart

Why Paulson is Wrong: Saving capitalism from the capitalists. Luigi Zingales

Economist (and former Freddie Mac staffer!) Arnold Kling on The Big Bailout:

Beg, Borrow, or Steal: Why the bailout is a terrible idea. Steve Chapman

Five Questions About the Short-Selling Ban: The government's only answer: Shut up, we're in charge! Brian Doherty

The Great Bailout Brouhaha: Free market economists weigh in on Paulson's plan

Bailout Bums: Libertarian-minded Republicans are caught with their pants down as Wall Street panics the Capital City. David Weigel

Hank Paulson's Countdown to Armageddon: How the Chicken Little treasurer is nationalizing the U.S. economy. Tim Cavanaugh

The Case Against the Bailout: Why the government shouldn't save businesses from their bad choices. Steve Chapman

Tons more coverage over at Hit & Run.

Comments

SIV|10.12.08 @ 11:24AM|#

The only good thing about the "bailout(s)" is the visceral revulsion shown to it by most Americans across the political spectrum. Much like the reaction to Kelo it reveals a widespread respect for property rights and a distrust of ruling elites among the citizenry.

Don the libertarian Democrat|10.12.08 @ 12:13PM|#

From Willem Buiter this morning:

http://blogs.ft.com/maverecon/2008/10/action-plan-my-foot/#comment-5221

"The temporary nationalisation of the bulk of the G-7 banking sectors may by now have become unavoidable and indeed necessary, but I would hope that we can avoid the introduction of the other trappings of comprehensive state ownership of the means of production, distribution and exchange. Should economists begin to dust off their manuals on central planning?"

Here's my comment:

So does the British plan this morning envision the government selling these shares in the future? I'm for this temporary plan, but I'd like to see the government eventually get out and the role of government guarantees, implicit or explicit, in facilitating the events leading up to this crisis and crisis be examined. Surely that makes sense. Posted by: Don the libertarian Democrat | October 12th, 2008 at 4:34 pm

I'm sorry everyone, but we're way past bailouts.

Jerry|10.12.08 @ 12:26PM|#

Buiter should get a copy of Bastiat's What Is Seen and What Is Not Seen. Government are using the capital market to fund all these bailouts, which means less capital available for other companies. No wonder this crisis will affect the real economy.

bill|10.12.08 @ 1:32PM|#

There's only one solution. Shut down the derivatives market. All derivatives trades should be declared null and void, and wiped off the books of the speculators. Any financial instrument containing a derivative should also be declared null and void, and wiped off the books. This unregulated, insanely leveraged casino should be shut down, and all claims arising from derivatives bets nullified, as if the bets had never occurred.

|10.12.08 @ 3:17PM|#

Isn't the NYSE closed tomorrow?

Kolohe|10.12.08 @ 3:48PM|#

Isn't the NYSE closed tomorrow?

NYSE is open for Columbus day, but most of the credit markets are closed. Which makes things even more interesting. (in the Chinese proverb way)

SIV|10.12.08 @ 4:04PM|#

Theses are very Chinese proverb times.

|10.12.08 @ 4:49PM|#

So does the British plan this morning envision the government selling these shares in the future? I'm for this temporary plan, but I'd like to see the government eventually get out and the role of government guarantees, implicit or explicit,

I've three words for you.
Tennessee Valley Authority.

|10.12.08 @ 5:13PM|#

Now we'll never know whether the world could have got its collective confidence back sooner without any government bailouts.
Most of us here say, "Yes," but nervous-nelly Republicans have ruined our "experiment."
Such is life.

I know my mind is always on the insane war on drugs, but look at comparison: Nervous-nelly Republicans will not call off this war, because they fear an increase in violence. Most of us here predict violence would decrease.
Such is life... one Catch-22 after the other!

Asharak|10.12.08 @ 6:36PM|#

Hey, Hit & Run trolls, if Balko is for privatizing Social Security, how does that mean he's allegedly in the tank for Obama?

Hit and Run Troll serial no. 4|10.12.08 @ 6:42PM|#

Asharak,

He's just trying to throw us off the scent. He's a wily creature.

Ebeneezer Scrooge|10.12.08 @ 7:03PM|#

The first real torpedo doesn't hit until Obama and his D-Congress socializes medicine.

The second real torpedo will hit, perhaps simultaneously, when they slam us with a carbon tax. Or something just about like it.

Once that salvo is done the rest of this economic squabbling will be about issues that will, forever more, be down in the noise.

Ebeneezer Scrooge|10.12.08 @ 7:10PM|#

And now somebody can come tell us all how Obama and his D-Congress aren't really going to socialize medicine. They're just going to arrange and change and manage and impose rules and regulations all over it.

You may insert "fascist" for "socialist" in the above if you wish.

The one thing we know for sure is that they *won't* impose free market conditions on our medical system. Because everybody knows the Europeans and Canadians are so much better off and happy than we are, and we just *have* to become more like they are.

Soon, before some Democrat blows a gasket.

Just think -- the only thing that might be standing between us and our imminent Western Europeanization is McCain. And it's not clear what he'd really do, even if he was going to win.

|10.12.08 @ 8:23PM|#

The thought of John McCain standing between us and Europeanization is like envisioning a wet tee-shirt contest, with him as the white tee-shirt that stands between the water and the boobs. There may be a tee-shirt, but those boobs are gonna get wet.

|10.12.08 @ 8:28PM|#

" Because everybody knows the Europeans and Canadians are so much better off and happy than we are, and we just *have* to become more like they are."

Germany and France seem to do pretty well. Their systems aren't without flaw, but they cover people better than we do and they spend less.

|10.12.08 @ 9:16PM|#

The US has had "socialized" medicine for years.
Once the principle of insurance has been violated--by a wrong-headed MANDATE--it was irrevocably socialized.

Reminds me of the cartoon of the fencers: "Hah! You missed me!"
"Shake your head."

Peaceful anarchist Ruthless

|10.12.08 @ 9:25PM|#

Monday? Doesn't the market open on Tuesday?

SIV|10.12.08 @ 9:35PM|#

Marcvs | October 12, 2008, 9:25pm | #
Monday? Doesn't the market open on Tuesday?

I hope you aren't planning on any trades.
Market open tomorrow.

Ebeneezer Scrooge|10.12.08 @ 10:04PM|#

Germany and France seem to do pretty well.

Some people are of that opinion, yes. But how much of what, do they go without in order to spend less? The government has only one way to "control" costs, and that is to *ration* what the people get.

I probably shouldn't mention the fact that as a consequence of their welfare states, they cannot afford to maintain their own defenses properly.

But then, the same people who think they do "pretty well", are usually the same ostrich types who think there's no need to spend any real money on defense anymore.

Russia? Bah, humbug. They wouldn't hurt a flea. Nothing to see there, move along.

Nigel Watt|10.12.08 @ 10:11PM|#

The thought of John McCain standing between us and Europeanization is like envisioning a wet tee-shirt contest, with him as the white tee-shirt that stands between the water and the boobs. There may be a tee-shirt, but those boobs are gonna get wet.

Except that you're claiming an unappealing thing (a McCain presidency) is analogous to an appealing thing (boobs).

This guy|10.12.08 @ 10:42PM|#

But with a McCain presidency, we're not talking about fun bags Nigel, we're talking about the sad sacks of the gerontocracy.

nj|10.12.08 @ 10:50PM|#

We already have socialized healthcare in this county, the Europeans just do a better job of practicing it.

SIV|10.12.08 @ 11:15PM|#

I'm sure I'll get screwed personally by any new "health care" scheme. There is nothing much to be said in favor of our present one.Though.McCain's "health care" plan sounded like an improvement.It wouldn't pass the Congress. A true free market in "health care" would require so many liberties to be realized.
Drug legalization,end of State mandated professional licensure,open immigration......

|10.12.08 @ 11:59PM|#

Nigel ... McCain is not analogous to the boobs. He's analogous to the tee-shirt. And all of us know that what we really want is for that tee-shirt to NOT be there.

Ebeneezer Scrooge|10.13.08 @ 1:23AM|#

Except that you're claiming an unappealing thing (a McCain presidency) is analogous to an appealing thing (boobs).

I'm not even sure what he's claiming. I just like the analog.

Now see this just goes to show that politics could be far, far more entertaining. And I for one think that Americans should lead the world into this bold new avenue.

Vote for me, I promise six orgasms a day in every bedroom!

Ebeneezer Scrooge|10.13.08 @ 1:25AM|#

Or you can have them out in the car in your garage. Americans like to have things in their garages.

Asharak|10.13.08 @ 4:39AM|#

We already have socialized healthcare in this county, the Europeans just do a better job of practicing it.

I don't think socialized medicine is perfect, but I don't know what it is about the health care issue that turns libertarians into social Darwinists.

Ebeneezer Scrooge|10.13.08 @ 4:45AM|#

You do understand what "libertarian" means. Right?

Can somebody tell this guy at least one teeny tiny little reason why a libertarian might not be jumping for joy about the idea of socialized medicine?

I've got a wet tee shirt contest going on out in my garage. We've got candles and there's antlers on the walls and stuff.

Just Sayin\'|10.13.08 @ 8:54AM|#

Read Up on the Bailout and More Before Monday's Opening Bell Signals More Losses!

Oops. Futures are way up this morning. So much for the snarky prognosticators.