Okay. The Paulson bailout was a total giveaway to the people who made up those dangerous mortgage-based securities in the first place. It probably wasn't the best idea. Economically, and morally, it sort of just didn't make sense.
But here's the thing. Paulson and Bush hyped the bailout so much that the world markets expected it. Paulson and Bush basically said that our economy will be ruined if the bailout didn't pass. So, naturally, investors everywhere were totally shocked when the House voted against it. Investor confidence is shattered, and that's dangerous.
It might be for the best that this version of the bailout didn't go through. The thing is, that doesn't mean the government should step away from the economy and pray that the free market corrects itself. We need to do something, the world markets are going to drop until the government intervenes in some major way.
Now would be a great time for a New Deal style investment in our country. Spend the $700 billion to fix what's actually wrong with our real economy. It might be the only way to avert a depression.
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