Real Peoples Politics

It’s an interesting word, bailout. Nowadays, it is a widely used term, bandied around by any and every political commentator, economic adviser and writer who wants to talk about the biggest topic of conversation in these United States: what kind of a bailout will we need? And if one is necessary for economic survival, exactly how much needs to be spent to hit that magic number at which we are guaranteed an economic turnaround?

The truth is, no one knows.

Everyday, we are treated to new estimates of exactly when the bottom of the economic wave will be reached, at which time we will all be expected to throw up our arms, shout “Hallelujah!” and start investing heavily in the market… those who can afford to, anyway. Every time we see an upturn, the stock market going up a few hundred points, many are treated to a false sense of security, which is almost immediately dashed over the course of the next trading day.

So what happens next?

We hope for the best. Incredibly, Citigroup is the latest bank to ask for a bailout. I find fault with that exact terminology; it seems that a request for a bailout inheritantly contains the assumption that the asking organization deserves it. As a major monetary installation, perhaps Citigroup very well does deserve a fiscal injection. But what about the other banks our government has promised to lend out? I’m glad that we’re saving them, and the government is doing the right thing, but shouldn’t we put a little more thought into the action behind it?

None of the current CEOs of any of the bailed-out banks has offered to resign, or take any significant yearly pay cut. Amazingly, these millionaires are asking for billions in assistance, but still refuse to help themselves. As any addict is instructed, you must first help yourself, to get on the road to recovery. And how will they change things, once their organizations are granted a second chance at financial life?

Some more serious questions need to be pondered, and put to those who are accountable. Ignoring those on each extreme, who either yelp that the banks must absolutely all be saved with no questions asked, and those who clamor for “survival of the fittest” and the collapse of whatever banks cannot sustain - everyone need to think realistically. The markets  tumbled even farther when the first bailout plan was rejected. Perhaps they will continue an upward climb, once important institutions are not only propped back up, but propped up with longterm, attainable goals, under new and competent leadership and accountable oversight, also by competent people.

A bailing out it is, but a free-for-all of thoughtless “gimmes,” it should not be. Let’s save the columns of our financial infrastructure, but reinforce them with better ideas and better leaders.

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