Metro State economist Mohammed Akacem adds his voice to those who oppose the bailout in today’s Rocky Mountain News:
… Supporters of the bailout warn us against the systemic risk involved if we do not do anything. Well, of course there is financial pain involved, but we need to decide whom we want to feel the pain. Should those who were responsible for causing this debacle — whether banks or unwise borrowers — pay for this? Or should the innocent taxpayer who had nothing to do with it in the first place pay for it?
Just as the supporters of the bailout warned us about what could happen if we did not go along in order to scare us into submission, it is time to warn them about what could happen if we do. Rewarding risky behavior simply invites more of it. It is called moral hazard. If we decide to remain hostage to the too-big-to-fail doctrine and succumb to the fearmongering that goes along with it, we might as well say goodbye to the market economy as we know it. …
Paul Hsieh also quotes some good commentary opposing the bailout. And the Ayn Rand Center has put up a web page devoted to the matter.
For a couple of more humorous takes on the mess, see recent posts by Diana and Paul. In fact, the last post is so funny — so painfully funny — that I’ll repost it below:
SUBJECT: REQUEST FOR URGENT BUSINESS RELATIONSHIP
DEAR AMERICAN:
I NEED TO ASK YOU TO SUPPORT AN URGENT SECRET BUSINESS RELATIONSHIP WITH A TRANSFER OF FUNDS OF GREAT MAGNITUDE.
I AM MINISTRY OF THE TREASURY OF THE REPUBLIC OF AMERICA. MY COUNTRY HAS HAD CRISIS THAT HAS CAUSED THE NEED FOR LARGE TRANSFER OF FUNDS OF 800 BILLION DOLLARS US. IF YOU WOULD ASSIST ME IN THIS TRANSFER, IT WOULD BE MOST PROFITABLE TO YOU.
I AM WORKING WITH MR. PHIL GRAM, LOBBYIST FOR UBS, WHO WILL BE MY REPLACEMENT AS MINISTRY OF THE TREASURY IN JANUARY. AS A SENATOR, YOU MAY KNOW HIM AS THE LEADER OF THE AMERICAN BANKING DEREGULATION MOVEMENT IN THE 1990S. THIS TRANSACTIN IS 100% SAFE.
THIS IS A MATTER OF GREAT URGENCY. WE NEED A BLANK CHECK. WE NEED THE FUNDS AS QUICKLY AS POSSIBLE. WE CANNOT DIRECTLY TRANSFER THESE FUNDS IN THE NAMES OF OUR CLOSE FRIENDS BECAUSE WE ARE CONSTANTLY UNDER SURVEILLANCE. MY FAMILY LAWYER ADVISED ME THAT I SHOULD LOOK FOR A RELIABLE AND TRUSTWORTHY PERSON WHO WILL ACT AS A NEXT OF KIN SO THE FUNDS CAN BE TRANSFERRED.
PLEASE REPLY WITH ALL OF YOUR BANK ACCOUNT, IRA AND COLLEGE FUND ACCOUNT NUMBERS AND THOSE OF YOUR CHILDREN AND GRANDCHILDREN TO WALLSTREETBAILOUT@TREASURY.GOV
SO THAT WE MAY TRANSFER YOUR COMMISSION FOR THIS TRANSACTION. AFTER I RECEIVE THAT INFORMATION, I WILL RESPOND WITH DETAILED INFORMATION ABOUT SAFEGUARDS THAT WILL BE USED TO PROTECT THE FUNDS.
YOURS FAITHFULLY MINISTER OF TREASURY PAULSON