Thursday, February 12, 2009

Our Problems Can't be Fixed by the Congress That Caused Them

This article by Harvey Golub is on Senator John Kyl's recommended reading list - I'm glad I found it.
Click the link to read the entire article.
I Vote No Confidence in Congress - WSJ.com:
"In recent months, Congress has displayed a fundamental lack of understanding of how our economy and our financial markets actually work. Members believe they can say a bank is likely to become insolvent and that will not lead to a run on the bank, or say a major insurance company is in trouble and not have insurance stocks tank. They believe they can extend a $700 billion Troubled Asset Relief Program (TARP) beyond its charter and not have every institution under the sun try to get what they believe is cheap capital.

Most significantly, although Congress is a large cause of the collapse of the home-mortgage market (witness the folly of Fannie Mae and Freddie Mac), members believe the markets are too stupid to recognize Congress's culpability and will maintain confidence in Congress's ability to resolve the financial crisis."

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