Along with our own Representative Scott Garrett, the skeptics are getting more press and growing louder:
"It's a tough sell to most of our members," said Rep. Tom Davis, R-Va., after a closed-door meeting with Paulson and Bernanke. "It's a terrible plan, but I haven't heard anything better."
There are a lot of plans out there, and most that I've read or heard are better than putting $700 billion in the hands of those that mismanaged the funds they had. Here's one we talked about at lunch, and while I can't take credit for it, it's an alternative that may appease those concerned about throwing more taxpayer money down a pit:
- Let the stupid and greedy fail. That's the way capitalism is supposed to work; there are consequences for bad choices.
- Make the $700 billion available to small banks who didn't get stupid and greedy. This would give them the capital they need in order to meet a greater demand caused by the failure of the stupid and greedy. It rewards discipline and it also would be repaid to taxpayers with interest.
- Eliminate the tax incentives for being stupid and greedy.