FOLLOW THE MONEY - ELECTION 2008

It depends on how smart those handling the bailout out are. If we leave it to the experts, at least those I have been listening to, it is possible that the taxpayer will actually profit. The government has the clout and ability to know when the debtors have the money to repay and can go after it and/or know when the property appreciates to its former value, etc. so it can be sold without a loss and the loan repaid. With careful management, what are bad loans can be transformed into good ones, resold, and put things back into solvency.

Hopefully this process will include better laws to prevent such speculation in the future, and our more benevolent law makers can be convinced that it really is important that people demonstrate a reasonable expectation of ability to repay a loan before a bank is required or encouraged to make one. And the speculators should be required to make good on their debts.

Nobody's hands are clean on this one. But the country is strong and we do have a few smart folks at the helm. I am convinced we'll get through this. I only hope that we emerge much wiser.

we do have a few smart folks at the helm.

Opening up the health insurance market to more vigorous nationwide competition, as we have done over the last decade in banking, would provide more choices of innovative products less burdened by the worst excesses of state-based regulation…

You should be able to buy your insurance from any willing provider " the state bureaucracies are no better than national ones. Nationwide insurance markets that ensure broad and vigorous competition will wring out excess costs, overhead, and bloated executive compensation.

A decade ago, Sen. John McCain embraced legislation to broadly deregulate the banking and insurance industries, helping to sweep aside a thicket of rules established over decades in favor of a less restricted financial marketplace that proponents said would result in greater economic growth.

Now, as the Bush administration scrambles to prevent the collapse of the American International Group (AIG), the nation's largest insurance company, and stabilize a tumultuous Wall Street, the Republican presidential nominee is scrambling to recast himself as a champion of regulation to end "reckless conduct, corruption and unbridled greed" on Wall Street.

"Government has a clear responsibility to act in defense of the public interest, and that's exactly what I intend to do," a fiery McCain said at a rally in Tampa yesterday. "In my administration, we're going to hold people on Wall Street responsible. And we're going to enact and enforce reforms to make sure that these outrages never happen in the first place."

The dirty little secret in campaign financing, however, is that 'reform' limited how much any particular entity or person can give to a candidate. It does not limit how much any particular entity can give in the name of its employees. That is how big unions, big corporations, etc. have and continue to effect influence on the process. It appears that the money is coming from the grass roots when it isn't.

Again it depends on one's perspective. A deficit is created when more money is spent than is expected to be taken in. If this 'bailout' results in as much or more money taken in than is paid out, then it isn't a true deficit but is rather an unprecedented enormous government owned accounts receivable account. Even though you don't have the money in the bank yet, an accounts receivable is considered an asset, not a debt.

I believe the government is in the process of closing the door to the chicken coop and we have plenty of room to be optimistic.

There is every reason to believe that much of it, if not all of it, can be recouped.