More on the proposed federal bailout

by David K. Williams, Jr. | 9:00 am, October 1, 2008 | Comments Off

Check out this Republican Senator's comments in a Bloomberg.com article:

``Over $1 trillion worth of market value was wiped off the books by the stock market drop,'' said Senator Robert Bennett, a Utah Republican. ``It is ordinary people looking at ordinary pensions, with their ordinary Main Street kind of 401(k) plans, who lost that $1 trillion. And they lost it in a matter of minutes.''

That "$1 trillion worth of market value was wiped off the books" because the assets were overpriced, by say, about $1 trillion.

Of course, a lot of that "market value" has bounced back since Bennett's hysterical pronouncement.

Bennett would have long term economic policy based on "a matter of minutes" on the stock market. That is exactly the kind of over-reaction that politicians are famous for.

Calm down, Senator Bennett. Take a deep breath. We are in this for the long term. And the government buying valueless assets to prop up the market value of private companies that bought them in the first place will only prolong the agony.

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