I Told You So

In my post "Hear No Evil; See No Evil," I made a prediction that the bailout program will not work, or its results will be marginal at best. I also stated "...they will do two things: lobby for more money, and further contort their bailout package to make it look like they're doing everything they can."

It's now been just a few weeks since the TARP program was given the green light, and already there are serious problems. So far, there are complaints of politicizing the funds and who gets them; showing preferences to friends and former business acquaintances; general mismanagement of the amounts given, and how they're tracked; heavy, behind-closed-doors lobbying; and, of course, calls for more money and expansion of the program. If politicians weren't so ridiculously predictable, it might actually be fun to sound like a prophet once in a while. Instead, it's just nauseating. But I'll make another couple of predictions anyway. By the time this program is fully under way, Henry Paulson will have well over a trillion dollars at his personal disposal – a trillion dollars of your money - one thirteenth of the total U.S. GDP. (Is he the first to singularly have authority over that much money?) In addition, there will be multiple committees and subcommittees trying to govern the program, all of which will be fighting for influence over amounts, timing and distribution rights.

But I'm also a firm believer in Mr. Murphy, and his one, undeniable law.

This is rapidly becoming one of the most worrisome economic times in American history. And if there is any way that this government can prove to the world how impotent it really is, that time is now. At some point Mr. Murphy will raise his ugly, old, wart-filled, wretched head, and remind everyone that he never, ever goes away. In fact, he's already started. Can you smell it? I can. The stench of failure. It's almost time to get out the pitchforks.

In this article, one of my favorite authors, Robert Higgs, skewers the TARP, and gets in some great digs on several other policies, industries and hysteriopots. It's really worth the time to read this article, and get a less than Chicken Little review of what the TARP is, does, has done, and what should be done. He calls it “The TARP Is Dead, Long Live The TARP.” Owch.
http://mises.org/story/3217

Mark Thornton advocates a “Slash and Burn” policy to bring the economy back to a healthy norm.

Daniel Mitchell details why bailing out the auto industry is a bad idea.

Daniel Ikensen explains why “There's Nothing Wrong With a 'Big Two.'"

And in "How Did We Get Into This Financial Mess?", Lawrence White explains where the mess really originated.

http://biz.yahoo.com/cnbc/081118/27781824.html
http://biz.yahoo.com/ap/081118/congress_autos.html
http://biz.yahoo.com/ap/081118/financial_meltdown.html