“McCain’s Third Way”

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http://corner.nationalreview.com/post/?q=YTM4YjIyNGIxNmJlNzlkNTkyMGNjM2YwYmZhYmU2MmU=

McCain’s Third Way [Kathryn Jean Lopez]

Bill Kristol proposes, among other options:

Improve on both Paulson and House Republicans with a new offer. This, based on my admittedly imperfect understanding of all this (but McCain has access to people with really good understanding), might be a combination of Larry Lindsey’s refinance-home-owners proposal and Lucian Bebchuk’s (and others’) proposal for direct bank recapitalization through Treasury security purchases and right offerings to shareholders. Introducing a new alternative at the eleventh hour might seem pretty bold and risky, but a) it’s probably better policy than what’s on the table now, b) who’s to say it couldn’t get a lot of support quickly, and c) there’s something attractive about opposing Henry Paulson and Barney Frank at once (sort of like opposing both Donald Rumsfeld and Harry Reid on Iraq a couple of years ago), and proposing a better course. It might be worth at least trying this alternative today, rather than focusing exclusively on trying to broker a deal between warring parties both of whose ideas aren’t great

http://weeklystandard.com/Content/Public/Articles/000/000/015/612vqfot.asp

http://weeklystandard.com/Content/Public/Articles/000/000/015/604avgrb.asp

http://www.law.harvard.edu/faculty/bebchuk/pdfs/Olin620_Addressing-Financial-Crisis.pdf

See also:

http://www.electionbid2008.com/?p=170936

http://fromdarkstar.blogspot.com/2008/09/mccain-options-on-financial-crisis.html

2 Responses to ““McCain’s Third Way””

  1. rosettasister Says:

    “Video: Kudlow: We Will Never Regulate Greed”

    Larry Kudlow, host of CNBC’s “Kudlow and Company,” says greed and fear are part of any market system, but executives who broke the law during the housing boom and bust should be prosecuted.

    Watch video here:

    http://kudlowsmoneypolitics.blogspot.com/2008/09/my-interview-with-newsmax.html

  2. rosettasister Says:

    “JPMorgan: Bailout plan won’t help credit markets soon”

    http://www.reuters.com/article/companyNews/idUKTRE48P64R20080926?symbol=JPM.N

    NEW YORK (Reuters) – A U.S. bailout plan for the financial industry is unlikely to help credit markets or the economy soon, and U.S. growth will likely contract over the next two quarters, JPMorgan Chase & Co said on Friday.

    The federal plan, known as the Troubled Asset Relief Program, or TARP, “may be passed by Congress, but should not, in our opinion, lead to materially improved credit conditions or stronger growth in the near term,” JPMorgan said in a research note on Friday.

    Lawmakers on Friday continued to negotiate over a $700 billion financial rescue plan after talks at the White House broke down in acrimony on Thursday and the biggest bank closure in U.S. history roiled global markets.

    President George W. Bush said that while there were disagreements on parts of the bailout plan, legislation would be passed by Congress. “We are going to get a package passed,” he said in a brief appearance at the White House.

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