Politicana

If anyone has more economics background than I (Econ 101 in 1989), I’d love to hear your thoughts about today’s Treasury Dept. bailout plan. I’ve read Krugman, but am still a bit fuzzy on the details. What does seem clear is that a fight is brewing as the administration fights for a blank check (and they really — they *do* deserve free reign of things, given how responsibly they have run things so far in 7.5 years) and the Dems who are going to fight for more accountability and the inclusion of an economic stimulus package for citizens (not just corporations). I’ve heard Obama already come out this morning in support of a plan that does more than what Treasury has so far proposed. According to gsadamb on dKos,

Obama’s speech included six specific stipulations for any bailout that happens.

1.) No blank check: Americans are going to be on the hook for almost $1,000,000,000,000. It’s taxation without representation to just write blank checks without being accountable to taxpayers.

2.) Taxpayer money should not be paid to reward CEOs. Period.

3.) Taxpayers are incurring a great amount of cost and risk. The investments should be protected, and they should be able to eventually recoup the losses.

4.) THERE MUST BE A PLAN TO HELP HOMEOWNERS STAY IN THEIR HOME.

5.) Obama pointed out that this is a global crisis, and that other nations need to step in to help secure the financial market.

6.) REGULATE. REGULATE. REGULATE.

Obama’s official statement is here.

I think Obama will welcome the opportunity to demonstrate his differences from the current president, casting himself in the role of protecting ordinary Americans rather than CEOs. What I really wonder, is will McCain also jump at the chance to break from Bush in a high-profile way and likewise not endorse the current Treasury Dept. proposal? I suspect he will. It will give him some anti-”more of the same” ammo prior to the debates. We’ll know soon enough.