Bailout rejected: Politics or Management?

House Voted ‘No,’ 228-205 for highly political reasons : this crisis threatens an economic and political basis: the free-market.

Republican, like Jeb Hensarling, argue that "the country was on a 'slippery slope toward socialism'." He explains: "If we bail out risky behavior, we will soon see even riskier behavior". And he's right. Considering the free-market logic, to his merit, he's coherent.

This bailout is a band-aid made up in too much haste, which betrays the principles of deregulation and make the State plays a role is not supposed to play according to them. Changing the rules of the game will change the game.

Either the whole system needs a thorough review or it has to be let follow its own rules.

This crisis happens during a presidential race. This is the greatest opportunity to raise questions about going on or not in this system. Which role has to play the State? Which deregulation? To what extent? This is a fundamental matter.

And I'm surprised that both candidates are so caureful to bypass this debate. They are both preoccupied by putting the finishing touches of their own styles of campaigning and management: John McCain was focused on showing himself off and Barack Obama was "inclined to work the phones behind the scenes". This article underlines: "Mr. McCain, who came of age in a chain-of-command culture, showed once again that he believes that individual leaders can play a catalytic role and should use the bully pulpit to push politicians. Mr. Obama, who came of age as a community organizer, showed once again that he believes several minds are better than one, and that, for all of his oratorical skill, he is wary of too much showmanship."

But is this only an issue of management?

This Sunday, McCain said nothing more than this vague declaration: "This is something that all of us will swallow hard and go forward with" on ABC's This Week, while Obama only talked about his participating to the negotiations and the principles he proposed to make the plan better on Face the Nation:

As we saw, their moves weren't useless, since the Paulson plan was improved. But eluding a fundamental question, which will anyway come back in the aftermath of this bailout, is an opportunity, which the debate between the candidates as the debate in the country will miss.

No comments: