Bailing out the Titanic

with a teaspoon.

It looks like the Wall Street bailout bill is going to pass. I am distraught with the actions of our Democratic caucus.

There are those who believe we are on the cusp of financial disaster. People I respect a great deal are in favor of doing something, even if it is wrong. Plug the financial hole before it sinks the ship.

The problem is that I think this is the wrong analogy. My feeling is that this is more like the boy with his finger in the dyke. We've plugged one hole, but there are many more that are likely to lead to collapse. Economists are already declaring that $700b is only a start. Mind boggling.

I've done my best. I've written and called my congressional delegation. I've urged my friends and family, and some folks I barely know, to do the same. I'm not sure how my delegation will vote, but I'm watching like a hawk.

In the final analysis, most economists seem to be saying that we are approaching this from the wrong end. We are buying up bad assets at premium prices - taxpayers will be left with worthless securities - thus bailing out the people who made these very poor decisions.

Warren Buffet showed that there is capital in the system. The problem is that the Wall Street moguls do not want to suffer the consequences of the free-market. To get Buffet's cash, Goldman-Sachs had to give a sweetheart deal. The money from the market comes at a premium. On the other hand, the money from taxpayers comes with very few restrictions.

There was one thing I agreed with McCain about during the debate Friday. This is just the end of the beginning. We are in for a long slog now that we have put chips on the table. Watch as we furiously try to protect this initial $700b investment with even more taxpayer dough.

Gamblers call this "throwing good money after bad." I have a feeling that voters are going to make incumbents pay for this bad, bad decision.