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Heavy-Handed Politics

"€œGod willing, with the force of God behind it, we shall soon experience a world
without the United States and Zionism."€ -- Iran President Ahmadi-Nejad

Thursday, September 25, 2008


The other day Jed Babbin wrote about the Dangers in the Bailout, and said: "There are two great dangers in the president’s proposal to bail out the financial industry.

One is that the government may interfere too much in our market economy, creating long-term problems larger than those that have now destabilized our financial system. The other is that President Bush will pay too high a price on other issues to get his proposals through Congress this week.

There is only one certainty: whatever the government does will cost taxpayers vastly more than anyone will now admit.

Some Congressional conservatives are cautioning against doing too much too fast. In a statement issued Saturday, Rep. Mike Pence (R-Ind) said, “Congress should act, but should act in a way that protects the integrity of our free market and protects the American taxpayer from more debt and higher taxes. To have the freedom to succeed, we must preserve the freedom to fail. Any solution to our present crisis must preserve our essential economic freedom.”

Pence and like-minded conservatives are right. Doing too much too fast is how the government creates big problems by solving smaller ones."

Read all of his column here.

Today he follows it up by saying we need to stop the stampede. In his current column he writes: "President Bush has asked for urgent action on his proposal that would, for two years, enable the Secretary of the Treasury to contract for, purchase and resell up to $700 billion of “…mortgage-related assets from any financial institution having its headquarters in the United States.”

But in congressional testimony earlier yesterday, Federal Reserve Chairman Ben Bernanke said, “We don’t really know what the long-term cost or benefit may be.”

There are many problems with the president’s proposal, but the one substantive problem Bernanke admitted overshadows all political issues. If we don’t know if it will work, shouldn’t less drastic measures be taken? Conservatives need to limit the government’s action and give the markets a chance to heal themselves. [Bold emphasis mine - HH]


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