Tuesday, September 30, 2008
Bailout: Do conservative commentators care about small businesses hurt by the credit freeze?
The Washington Times today has an editorial that sounds like an echo of the “rogue Republican” rejection of the deal yesterday, “The Bailout that Wasn’t” (there). Yes, the circus in Congress looked like a Coen Brothers film. The link is here.
The editorial makes good points, especially about the likelihood that $700 billion is not enough. It points out that many foreclosed homes are investor vacation properties in hurricane-damaged or prone (or similarly with brushfires) in Florida, the Gulf Coast, or California. The maintenance and mortgage could not be covered by income, so investors ran from them. They should be chased down and sued, as they were after the similar Savings and Loan mess at the end of the 1980s. The editorial also notes a link between illegal immigration and fraudulently written mortgages. These should lead to prosecutions.
Some of the points seem more ideological, including cutting corporate incomes taxes and capital gains taxes. That’s the trickle down theory that doesn’t always trickle. (Remember Ross Perot?)
What is odd to me is that the editorial, as massive as it is, doesn’t mention the credit freeze, a favorite subject of Suze Orman. That’s the main reason for the urgency of the bailout. Isn’t the Washington Times concerned about small business?
ABC News is reporting on World News Tonight that the London Interbank Offered Rate (LIBOR) has recently increased from 2.5% to 6.9% for overnight interbusiness loans. This is a lot to do with the credit lockup that liberal media commentators (Suze Orman, Anderson Cooper, etc) are stressing. The Bloomberg story ("European Banks May Raise Loan Rates as Libor Surges to Record", by Caroline Hyde and Tim Culpan) is here.
Oct. 1, 2008
The Senate version of the Bailout being voted on tonight is available at Govtrack in PDF format here. It is being tacked on to the ERISA Act of 1974.