Thursday, October 09, 2008

Buying Banks

WE'VE MOVED! Democratic Convention Watch is now at

Today, you're going to be hearing a lot about the Fed buying pieces of banks. Some on the right might call this "nationalizing", and if so, they will be against it. Along with the rate cut, it may well free up enough funds so that the credit freeze thaws. It could also be an unparalleled disaster since bank participation will likely be voluntary, potentially creating sets of "have" and "have not" banks.

My thought about this potentiality set involves McCain. Since he's throwing sinks and everything else that he can find, what will he do here? Will he come out forcefully against the buy-up, to pander to the right? Will he stay silent to avoid offending the populist portion of the evangelical right?

But what REALLY interests me is that had McCain chosen Mitt Romney as his running mate, he would have been much better positioned when the economy hit the skids, because no matter what you think of Mittens, he certainly has economic gravitas. On the other hand, had he chosen Mike Huckabee, he would have been able to let Mike talk populist during the bailout discussions.
You can bet that I'm not the only one who knows this. And if Obama wins on November 4th, you can also bet that these guys will kick off the 2012 election season on November 5th.

So here's the question: