Monday, September 29, 2008

George Soros is half right

Paulson cannot be allowed a blank cheque

By George Soros
The bill submitted to Congress even had language in it that would exempt the secretary’s decisions from review by any court or administrative agency – the ultimate fulfillment of the Bush administration’s dream of a unitary executive.

Mr Paulson’s record does not inspire the confidence necessary to give him discretion over $700bn. His actions last week brought on the crisis that makes rescue necessary. On Monday he allowed Lehman Brothers to fail and refused to make government funds available to save AIG.

In my opinion, the management of Lehman Brothers and AIG are responsible for the failure of their companies. It will be a very good thing if it is made clear that there is no such animal as too big to fail. In my never-was-humble-opinion nothing else will serve to cure the hubris that played such a large role in the present debacle.

Soros' book, The Age of Fallibility: The Consequences of the War on Terror, is filled with insight and highly recommended.

Edit -
Soros proposes an alternative plan, I am not sure I like it; but it is certainly superior to what the Senate passed last night.

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