President Bush, Henry Paulson and Ben Bernanke haven’t been able\u00a0to push through bailout\u00a0legislation without pushback from Republicans and\u00a0Democrats alike.<\/p>\n
This is good. For a while.<\/p>\n
Time is still of the essence.<\/p>\n
The market today agrees so far, rising on expectations<\/em> that the bailout will happen, and not fretting over the fact that cooler minds are prevailing; giving pause.<\/p>\n Free market purists are calling for a no bailout approach but this situation has devolved to the extent that inaction is no longer an option.<\/p>\n The cause and the action needed to rectify the effect need to be treated separately. The patient needs to be stabilized before we call in forensics. In time,\u00a0the facts will show the blame will fall across multiple administrations and both parties in congress. True to form in any bubble, irrational exuberance will have been exhibited by all parties involved. Once the market lost its luster,\u00a0real estate became the highest and best use for capital. For individuals and corporations alike.<\/p>\n Too much money chasing any particular ascendant asset class results in\u00a0the potential for a bubble to form. Coupled with a congressional mandate to push all citizens, even those that truly don’t qualify, into home ownership, you have the potential for a disaster.<\/p>\n Another perfect storm.<\/p>\n In the wake, the bailout needs to be right more than it needs to be fast. Past examples are rare, but there is a chance, if structured properly, that the American taxpayer could recoup much or all of the bailout dollars. A knee-jerk reaction focused on quick action over prudent action will all but prevent this.<\/p>\n If we are buying the assets, we need to be in a position to benefit from their appreciation in value and\/or proceeds of their sale. Congressional oversight and control of executive compensation must also be mandatory provisions.<\/p>\n As for the finger pointing? Blaming this disaster solely on Wall Street is inaccurate and unproductive. This was a systemic failure. A failure of regulation. A failure of ethics. A failure of speculation.\u00a0We are not bailing out Wall Street, we are bailing out our entire\u00a0national\u00a0financial system.<\/p>\n Mrs. Roosh and I will be travelling to New York tonight\u00a0through Sunday to see what we can do. We will keep you posted on our progress. Okay, it’s more of a vacation, planned since February.\u00a0I promise if Hank, Ben, or G.W. call on me, I will drop what I’m doing. In the John McCain idiom, we will roll up our sleeves and work tirelessly to restore confidence in our financial systems.<\/p>\n …and we’ll take some pictures.<\/p>\n Update:<\/p>\n