November 2020

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« PLEASE, Just Say No! | Main | One of those academics that Bush didn't want to listen to »


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Hooray!...for the moment...but will chicken house members change their mind on a re-vote if the markets keep falling so sharply?

While I would love to believe that this NO Vote is permanent, the overwhelming number of calls to congressmen by people shouting NO amidst varying profanities, I remain skepticle. When in the last decade (if not longer) have we seen the government turn down an oportunity to obtain more power? My biggest fear is that the bill will simply be retooled, and then revoted upon. This is simply one bill that needs to disappear.

However, for the first time in a long time, Kudos to the representatives who LISTENED to those whom they are supposed to represent

Great comment on establishment conservatives, Steve. Yes, yes, a thousand times yes. I respect the choice of an earlier generation of liberals (in the classical tradition) to forge an alliance with conservatives. Their common enemy socialism was a big scary monster for most of the 20th century. No more. It is long past time for a divorce. Where is Tammy Wynette when you need her?

Roger, I wonder if we have your Big Player effect at work here. Would the stock market crash havee been 777 on this day (or even this week in general) if it wasn't for Paulson & Co. creating this expectation that $700 billion will be injected into the system? If they had not proposed anything, would we have seen this? Is this maybe an example of government itself destabilizing an already highly problematic situation?

What is also problematic is that some members may now rethink their votes in light of the stock market reaction.

Great remark, Ivan. These guys thought taxpayers were going to get stuck with the tab and suddenly that seems less likely. The market would have to drop on such news. Thus, if you look *just* at today's drop it's not yet clear whether Big Players is informative. The larger point, however, is that we have this on again/off again bailout with an uncertain and highly politicized role for the government and a Fed far from equilibrium. This chaos seems to be making markets more subject to herding and contra-herding just as Big Players theory predicts.

Two dumb questions from down under.
Who actually gets the trillion?
What happens to the people who have defaulted on dud loans under the bailout versus no bailout scenarios?

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