Comments on: The visible hand of Congress. http://www.hooversbiz.com/2008/09/29/the-visible-hand-of-congress/ Individuals — Companies — Industries: How We Work Now. Wed, 17 Mar 2010 13:31:45 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Is the government betting that Citi and Chase are too big to fail? | NewsMesh http://www.hooversbiz.com/2008/09/29/the-visible-hand-of-congress/comment-page-1/#comment-10816 Is the government betting that Citi and Chase are too big to fail? | NewsMesh Wed, 08 Oct 2008 17:27:13 +0000 http://www.hooversbiz.com/?p=1325#comment-10816 [...] for a moment the $700 billion bailout bill bandied about Capitol Hill, the multibillion-dollar lifeline cast by the government to Fannie Mae and Freddie [...] [...] for a moment the $700 billion bailout bill bandied about Capitol Hill, the multibillion-dollar lifeline cast by the government to Fannie Mae and Freddie [...]

]]> By: Bizmology » Blog Archive » Is the government betting that Citi and Chase are too big to fail? http://www.hooversbiz.com/2008/09/29/the-visible-hand-of-congress/comment-page-1/#comment-10692 Bizmology » Blog Archive » Is the government betting that Citi and Chase are too big to fail? Wed, 01 Oct 2008 13:00:23 +0000 http://www.hooversbiz.com/?p=1325#comment-10692 [...] for a moment the $700 billion bailout bill bandied about Capitol Hill, the multibillion-dollar lifeline cast by the government to Fannie Mae and Freddie [...] [...] for a moment the $700 billion bailout bill bandied about Capitol Hill, the multibillion-dollar lifeline cast by the government to Fannie Mae and Freddie [...]

]]> By: Tim Walker http://www.hooversbiz.com/2008/09/29/the-visible-hand-of-congress/comment-page-1/#comment-10666 Tim Walker Tue, 30 Sep 2008 22:33:09 +0000 http://www.hooversbiz.com/?p=1325#comment-10666 Kay -- We may be stuck with them today, but my bet is that it's always been like this. In other words, I doubt the members of Congress we have today are worse than in, say, 1837. Alex -- Thanks so much for the long and thoughtful reply. Clearly Paulson (or a staffer) overreached in the first draft of the bill. Like you, I'm glad that there's been a process (still ongoing) of bipartisan wrangling to bring the bill forward. What surprised me is that a bill actively supported by folks as different as Barney Frank and George W. Bush would have been defeated. Maybe I'm also surprised that a vote of this magnitude would even be taken if the House leadership wasn't sure of the outcome. Laura & Chris -- The trick here will be to separate what we "should" do in the moral or ethical sense from what we "should" do in the technical economic sense. We're probably in for some stomach-turning hard medicine, regardless. Kay — We may be stuck with them today, but my bet is that it’s always been like this. In other words, I doubt the members of Congress we have today are worse than in, say, 1837.

Alex — Thanks so much for the long and thoughtful reply. Clearly Paulson (or a staffer) overreached in the first draft of the bill. Like you, I’m glad that there’s been a process (still ongoing) of bipartisan wrangling to bring the bill forward. What surprised me is that a bill actively supported by folks as different as Barney Frank and George W. Bush would have been defeated. Maybe I’m also surprised that a vote of this magnitude would even be taken if the House leadership wasn’t sure of the outcome.

Laura & Chris — The trick here will be to separate what we “should” do in the moral or ethical sense from what we “should” do in the technical economic sense. We’re probably in for some stomach-turning hard medicine, regardless.

]]> By: What I read to keep up with the financial markets. -- Hoover’s Business Insight Zone http://www.hooversbiz.com/2008/09/29/the-visible-hand-of-congress/comment-page-1/#comment-10660 What I read to keep up with the financial markets. -- Hoover’s Business Insight Zone Tue, 30 Sep 2008 15:16:25 +0000 http://www.hooversbiz.com/?p=1325#comment-10660 [...] the wake of yesterday’s venture into political economy, I thought it might be useful to tell you what I read when I’m looking for financial insight. [...] [...] the wake of yesterday’s venture into political economy, I thought it might be useful to tell you what I read when I’m looking for financial insight. [...]

]]> By: Chris L http://www.hooversbiz.com/2008/09/29/the-visible-hand-of-congress/comment-page-1/#comment-10658 Chris L Tue, 30 Sep 2008 14:30:31 +0000 http://www.hooversbiz.com/?p=1325#comment-10658 I think people like Paul Volcker should be listened to... instead of dumping a ton of money into the hands of those who brought us to this point with only the vaguest idea of how it will be used. There are some voices of reason to be heard who actually want to consider what might work in the long term rather than saving themselves, friends, and trying to make political hay. I think people like Paul Volcker should be listened to… instead of dumping a ton of money into the hands of those who brought us to this point with only the vaguest idea of how it will be used. There are some voices of reason to be heard who actually want to consider what might work in the long term rather than saving themselves, friends, and trying to make political hay.

]]> By: Laura C. http://www.hooversbiz.com/2008/09/29/the-visible-hand-of-congress/comment-page-1/#comment-10657 Laura C. Tue, 30 Sep 2008 09:01:10 +0000 http://www.hooversbiz.com/?p=1325#comment-10657 Interesting indeed. I have mixed feelings about what is going on, and my current thinking is that the government should be helping home owners (yes even the ones who took out mortgages they couldn't afford) before it helps the people who were wildly betting with all of our retirement - overleveraging those mortgages to buy their oversized homes in Greenwich. See this article in the NY Times: http://www.nytimes.com/2008/09/28/business/28every.html?em Interesting indeed. I have mixed feelings about what is going on, and my current thinking is that the government should be helping home owners (yes even the ones who took out mortgages they couldn’t afford) before it helps the people who were wildly betting with all of our retirement – overleveraging those mortgages to buy their oversized homes in Greenwich. See this article in the NY Times: http://www.nytimes.com/2008/09/28/business/28every.html?em

]]> By: Alex S. Jones http://www.hooversbiz.com/2008/09/29/the-visible-hand-of-congress/comment-page-1/#comment-10654 Alex S. Jones Mon, 29 Sep 2008 23:07:06 +0000 http://www.hooversbiz.com/?p=1325#comment-10654 Great post Tim, though I would note that politicians often acts from the gut as well and I think in this case the electorate was reacting to the very short time span allotted to review of the bill. I don't think anyone involved would choose to damage the economy, but this bill was put together in a very short period of time but it will have an impact for decades to come. I think it's fair for the electorate to pressure their representatives to slow down a bit and read what they're voting for and amend it where needed. I bet many of them have yet to read it in full, choosing to follow the pressure of their party leaders or the calls of their constituents. On the business-side, I agree, the majority of business folks I know are solid, trustworthy and intelligent, The problem lies in the fact that there are enough who do not meet that bar, which is why we are where we are economically. Smart people made dumb decisions. Honest leaders were either in the dark or looked away at pivotal times. It happens; we're human. As for Paulson, I would have agreed that he was likely incorruptible prior to the three page plan he submitted, but those now-infamous 32 words has convinced me otherwise: <blockquote>Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.</blockquote> That's not how our democracy works and it sure doesn't fall into the expectations our founders and the lawmakers since set out in crafting our nation. I'm not claiming that Paulson is corrupt in the sense of greed, but rather in the sense that he feels that he and those who follow should wield great financial power unchecked by the Legislative and Judicial branches. In fact it evens allows him to sidestep the Executive branch to which he belongs. Had Congress rushed into a vote on a bill that they hadn't fully read nor researched by consulting economic experts outside of Wall Street (some of whom disagree with Buffett and have proposed other plans), we could have passed a very dangerous law. Our economy is going through a tough time, but a few days of intelligent research, debate and bi-partisan compromise will shore us up in the long run far better than a quick reaction. Great post Tim, though I would note that politicians often acts from the gut as well and I think in this case the electorate was reacting to the very short time span allotted to review of the bill. I don’t think anyone involved would choose to damage the economy, but this bill was put together in a very short period of time but it will have an impact for decades to come. I think it’s fair for the electorate to pressure their representatives to slow down a bit and read what they’re voting for and amend it where needed. I bet many of them have yet to read it in full, choosing to follow the pressure of their party leaders or the calls of their constituents.

On the business-side, I agree, the majority of business folks I know are solid, trustworthy and intelligent, The problem lies in the fact that there are enough who do not meet that bar, which is why we are where we are economically. Smart people made dumb decisions. Honest leaders were either in the dark or looked away at pivotal times. It happens; we’re human.

As for Paulson, I would have agreed that he was likely incorruptible prior to the three page plan he submitted, but those now-infamous 32 words has convinced me otherwise:

Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.

That’s not how our democracy works and it sure doesn’t fall into the expectations our founders and the lawmakers since set out in crafting our nation. I’m not claiming that Paulson is corrupt in the sense of greed, but rather in the sense that he feels that he and those who follow should wield great financial power unchecked by the Legislative and Judicial branches. In fact it evens allows him to sidestep the Executive branch to which he belongs.

Had Congress rushed into a vote on a bill that they hadn’t fully read nor researched by consulting economic experts outside of Wall Street (some of whom disagree with Buffett and have proposed other plans), we could have passed a very dangerous law.

Our economy is going through a tough time, but a few days of intelligent research, debate and bi-partisan compromise will shore us up in the long run far better than a quick reaction.

]]> By: Kay http://www.hooversbiz.com/2008/09/29/the-visible-hand-of-congress/comment-page-1/#comment-10653 Kay Mon, 29 Sep 2008 22:57:38 +0000 http://www.hooversbiz.com/?p=1325#comment-10653 The curse of a representative system is that it affects our overall country's well being. Sometimes a member of Congress must do what is right for the country, knowing that it might not be popular or even good for his or her particular state or district. If the whole doesn't hold, then all the parts are worthless. We are stuck nowadays with politicians instead of statesmen and women. The curse of a representative system is that it affects our overall country’s well being. Sometimes a member of Congress must do what is right for the country, knowing that it might not be popular or even good for his or her particular state or district. If the whole doesn’t hold, then all the parts are worthless. We are stuck nowadays with politicians instead of statesmen and women.

]]>