This is a cop-out as it’s just a repost, but it pretty much echoes my opinion:
From The LA Times:
“I am a huge proponent, at all times, of doing nothing. Remember when everyone was filling bunkers with millet because computers wouldn’t be able to handle a year with three zeros in it? I stayed Calvin Coolidge cool. After America was attacked on 9/11, I suggested keeping our armies home. When John McCain responded to the economic crisis he’d have to deal with as president by suspending his campaign, I started to think that maybe he’s my guy after all.
Even though I understand so little about economics that much of my long-term investments are tied up in Costco products, I feel pretty sure that letting Congress give Treasury Secretary Henry Paulson $700 billion to buy super-crappy mortgages is not the right call.
Sure, like any American, when I see a photo on the Internet of an adorable little investment bank and find out it’s at risk of being put to sleep, I want to throw in $2,000 to $3,000 of my own money to adopt it. But instead of jacking up inflation, letting the dollar sink further and paying higher taxes so we can keep up cheap borrowing — which is what this plan amounts to — I think we need to let those who made bad loans get burned. We need to accept that credit will dry up and that maybe — for just a bit — we’ll have to stop buying more than we can afford.”
Although had I been more financially mobile before 9/11 I probably would have had a bunker full of millet.