I don't look at this as a political issue, although it is difficult to separate the economy and politics. I just saw the open maw of an abyss last Tuesday. When the VIX hits 42, and MS is hammered after a good quarterly, and GS is being taken down for no legitimate reason, and all of the people I know on the floor are scared, and the politicians on both sides are scared, and CEO's all over the place are scared, there is reason to be scared. Not doing anything is not the answer as I see it.
When Glass-Steagol was enacted it worked, the New Deal worked, the Securities act of 1933 worked, the Securities Exchange act of 1934 worked, the Investment Company act of 1940 worked, these were all enacted in response to crises. Other Gov't plans have worked in the past, they just don't get the same publicity that the failures do.
There are polls that show the majority of Americans would vote against the bill of rights, or some of it's components, would anyone advocate for that?
If the credit markets continue to seize up, and they will if there is nothing done, there will be serious difficulty in doing commerce. If the events of the last two years tells us anything it's not that we acted too fast but too slow. The Gov't is stalled by inertia, and the handcuffs of partisanship, and to stand still is to die.
Call it a bailout or a rescue if you like, but the ones who will be rescued are the ordinary citizens, the mortgage holders, the workers, and the 401K/IRA investors, as well as the Wall St. fat cats, and the politicians. Let's assign the blame, and the causes during the forensic analysis, but let us not delay to spite the responsible and hurt the already hurting victims.
Let me be clear - I despise politicians of both colors pretty equally. To me politics is some kind of soap opera style popularity contest driven by small minded people for the benefit of a small minded media who think the whole population is similarly small minded.
But that doesn't mean that government itself is useless only that we need a hard and fast attempt at a solution not a long winded debate on who did what including a complex set-up for the future round of "it's their fault not ours!"
At this point the free-market cannot fix the problem without serious pain. JP Morgan, Barclays, Bank of America, and Warren Buffet cannot buy everyone else!! Allowing things to go to their logical conclusion would mean more pain than anyone would think necessary. This has gone too far already. The US is too big to fail and it needs to bail itself and the rest of the world economy out and the longer we wait and point fingers the closer we get to the abyss and a point of no return.
If only CEO's and other executives of these banks agreed. Then we wouldn't be arguing over things like "curbing" executive pay or "reducing" golden parachutes; they'd be eliminated...given up, freely, for the greater good.
Any package that has even a trace of evidence that the people who made this mess will end up getting off scott free, is going to run into severe opposition. There's a big difference between "curbing" executive pay, and eliminating pay for those executives. It's not their motherfucking money, the cocksuckers...it's OUR money. It's MINE. And THOSE specific assholes that made this fucking mess CAN'T HAVE ANY.