What of the big one? What of the Bush proposal that has the Federal
Government picking up all bad debts to allow the banking system to
behave as usual? Essentially this would create a two-tier system in
which we have capitalism for profits and socialism for losses. This goes
against everything in which I ever believed. Ninety-three percent of
mortgage holders pay their bills on time. Why not let the other 7%
default? If some mortgage bankers are stuck with bad paper because they
foolishly gave home loans to people who could not afford them those
bankers should have to sink. It seems to me we would be stronger for it
in the long run, even though there would be significant disruption in
the short term. I hope I am wrong. The stock markets surely liked Bush's
proposal. It wiped out all loses of the previous week. If Bush is proved
to be correct, he will go down in history, like Harry S. Truman, as a
courageous leader who bit the bullet when the going was tough. If he is
not, he will replace Herbert Hoover and Jimmy Carter as a failed
President.