WEDNESDAY: John Tamny at RealClearMarkets says Treasury's and the Federal Reserve's underlying economic assumptions for curing what ails us----inflation, commodities bubbles, devaluation of the dollar and the housing/banking crisies---are dead wrong.
UPDATE: Larry Kudlow applauded Hank Paulson earlier today for saying there would be no more federal bailouts and for preserving the risk of failure. So what happened to Paulson in the last few hours?
While I reserve the right to change my mind as I mull new information over the next few days, I cannot see how the Fed's move to partially nationalize and bail out AIG with an $85 billion "emergency loan" can be good for our country in the short, medium or long term.
We have become a hysterical, regressed people clamoring for government of the quick fix to right every wrong, to blunt every accountability and to forestall every pain. Our founding fathers never meant for government to play this role in our lives. The AIG bailout announcement tonight shocks me. We're on the road to socialism and it's going to come back to haunt us sooner rather than later. When government tries to fix a problem like AIG, it ends up creating 10 others worse than the first and only forestalls the inevitable.
I've never cared for Treasury Secretary Hank Paulson, but tonight I fear him and think he and Ben Bernanke are taking us down a treacherous road from which we may not soon recover. I need to attempt to figure out what they are thinking. Are they doing this for the benefit of the Sovereign Wealth Funds again? Does Paulson have some sort of economic messiah complex?
God save this country from the likes of Mr. All Things To All People, Hank Paulson who is now the Chief Nanny at Treasury.