Blowing Up The Dam

clipped from www.davidwarrenonline.com Here is how John Cochrane, Myron S. Scholes Professor of Finance in the University of Chicago, characterized the bailout, in an interview with Fox News: "The legislation is like this: some boats are sinking, so rather than bailing those boats out, you blow up the dam and drain the whole lake." That comment, and many like it, was offered even before "sweeteners" were added, that would in themselves roll any economist's eyeballs. It is worth adding that not one of the politicians voting on the 450-odd-page bill can possibly have read the whole thing, let alone deeply considered the implications of its parts. Few of them have an understanding of the crisis they are legislating for. The blind are leading the blind.