An elderly friend of my friend's father, over drinks at a small 4th of July dinner party on the seventh floor of their Cocoa Beach condo, pointed out that the economy still had a way to fall. He maintained that if history repeats itself, as it always seems to do, then the overall economy had only fallen two thirds of the 30% historical average. It would appear that it -- the economy -- is still falling and is probably closer to 30% then it was a few months ago. Let's hope that this plunge in values and earning power rebounds at this magic historic marker.But this didn't stop congress from overturning what appeared to be a sure-thing vote to pump $700 billion into the well of bad mortgages and loans. I read the draft version of the ‘‘Emergency Economic Stabilization Act of 2008’’ -- it's not light reading, but you do get the gist of how these things are done -- yet I had my doubts about just how sure the legislators were about this bill. This is a big chunk of 'throw it against the wall' money. Most of the guys and gals voting on this are politicians and not economists. They can throw out their chests and sound deeply authoritative, but what do these people know but what they've been told?
Here's the rub: If you really think change is the 2008 call for action then you've got to believe that not doing the establishment thing, i.e. pitching dollars at the big banks that bought up these huge bullshit mortgage pools, is definately the way to go even if you can't see the other side of what might or might not happen. If you also believe that capitalism is best when government isn't your partner you didn't support this legislation either, even if the change-thing isn't your cup of tea.
In either case you're willing to bet on the ingenuity of the American people and American business community, hoping [praying?] that citizens left to their own ingenious devices (and occasionally prodded by the evolving regulatory hand of government) will assure the success of this great American capitalist experiment. I like that.










