I am following the story of the $700 billion bailout closely, because I have very mixed feelings about it. On one hand, I believe capitalism should be allowed to follow its course, which means that if certain institutions fail, stronger ones will step in. It means hardship, yes, but sometimes the market can use a correction. I don't like socialism and I did not overextend my credit on my mortgage, so why need I help?
On the other hand, the ripple effect of banks failing could be catastrophic because unfortunately we are a society where overreaction is the norm and cannot see the forest but for the trees.
I never thought I would find myself agreeing with Barney Frank, but he is right - if we are handing the money over to Ben and Henry, more oversight is needed. I would not want this bill passing until there are clear guidelines as to which securities will be saved (because not all can be saved) and how much on the dollar the government will be paying and audit controls.
Considering I am being put into the position of the money lender, it's the least I can ask.