Already the Bush administration has engaged in bait and switch, promising to use the money to buy up bad securities, but instead using it to buy stakes in leading banks, which is itself bad policy and bad economics. That much money is an obvious target for fraud and corruption as well as bad faith. Prosecutors must keep investigators on alert and indictments at the ready to ensure that criminals do not fleece the taxpayers as they have been by politicians.
We must act quickly to restore integrity to the financial marketplace by enforcing laws and regulations against fraud and other misbehavior. We also must correct policies that led to Wall Street’s debacle. Congress must rein in the Federal Reserve, since the latter’s ‘easy money’ policy helped create the housing bubble that just popped. Fannie Mae and Freddie Mac must be privatized and Congress must end its interference in the lending markets.
Politicians, as much as Wall Street traders, were responsible for the current mess. The people must hold elected officials accountable.
When government is the problem, more government is not the answer. And when the same politicians who created the mess are reelected to office time and time again, there is little hope that these same people will resolve our problems. True change—not that of which Barack Obama has been championing—will only come from electing officials who have committed to reducing the size of government and its intervention in the economy.
Even just a few days before the election, neither Sen. John McCain nor Sen. Barack Obama has fully committed to keeping the government out of the economy. Both support the same policies of government intervention that created the financial crisis in the first place.
Americans cannot afford more big-government fixes for today's problems. Americans cannot afford Senators John McCain or Barack Obama.