Thanks, this was helpful. My rep is Barney Frank - I've been faxing him Dean Baker's recommendations, along with explanations of how he was among the economists who has been warning of this bubble for years. I have no illusions that the Frankfurter has read any of them, he is a pissant know-it-all who has little patience for his constituents.
I don't understand how it is possible to move forward on this given there is no room for agreement among those elected officials who would like to insist on transparent oversight and serious strings attached for any bailouts and those who are dead set against gov-mint intervention of any kind. The populace has been beleaguered with misinformation from the corporate media and thinks something 'smells' but probably doesn't exactly understand the reason behind the stench. Especially if they listen to Rush.
I worry that a long stalemate is in store for us. However, Baker claims that if credit markets freeze, the Fed will intervene within a few hours as it had been prepared to do in other crises.
http://tpmcafe.talkingpointsmemo.com/2008/09/29/why_bail/
Do others agree?? Is there a place where those economists who do not rationalize neo-liberal policies discuss such scenarios? Oh, wait: Max probably works there and he's unable to comment.
Maryellen