Monday, October 06, 2008

Ivy League Idiot Lacrosse Players in Suits

So the markets opened down today, because foreign markets were down overnight, because "investors realized $700 billion financial rescue plan won't work quickly enough to unfreeze credit markets," according to Seriously? I've been led to believe investors are smart people, but if it took them all weekend to come to the conclusion that I've known for three weeks, they're nowhere near as smart as I thought they were.

To borrow a phrase from Kurt Vonnegut, $700B is like a fart in the windstorm compared to the amount of bad debt that needs "fixing." And all along everyone's known this "rescue plan" (don't call it a "bailout" because for some reason that sounds like a bad thing) won't begin to do anything for at least a month while it gets created and organized. Hmmm. If only there was an existing lender of last resort, perhaps one that's been in existence for nearly 100 years already, one that has virtually no statutory responsibility other than just being the lender of last resort, that would be great. Oh well. Congress couldn't just sit around and wish the Federal Reserve into existence; they had to "do something."

I realized the other night while laying in bed that I've been searching for some way to communicate how bad an idea it is for government to act quickly, but there was no need for me to wrack my brain because it's a principle that's been recognized by most people for so long that there's a folk saying regarding it: Haste makes waste. When the Supreme Court, in a chamber with murals of Moses on the wall, finally rules our money can no longer bear the motto "In God We Trust," maybe they can replace it with "Haste Makes Waste."