Del. Pollard's Take on 'The Bailout Deal'

By: Chris Guy
Published On: 9/29/2008 1:01:26 PM

From Del. Albert Pollard (D-99):

While the leaders of this nation negotiated a new bailout deal over the weekend, things seemed pretty normal on the Northern Neck. I got a chance to see some bald eagles that were on "The Cliffs" of Richmond County, geese were moving South and the weather forced farmers to take a break from long harvest days.

I rarely delve into national policy, but while the bailout deal won't change whether there is rockfish migration this fall, it will change just about every aspect of American Capitalism.  

As I am writing on deadline, I do not pretend to know everything in the 110 page bailout plan, nor do I know if it will even pass in the House of Representatives today. However, there are some things that I do know.

Free markets depend upon risk, reward and failure so that they can make long term efficient decisions. Indeed, the very efficiencies of big picture economic decision making means that - to avoid a future crisis -- there must be some losers on Wall Street and in the investment community.

cont'd after the jump....

If the bailout bill insures that the people who should lose big do lose big, then it is probably acceptable and deserves passage.  

Those people who take the biggest risk of time, talent and capital in the free market deserve to get the biggest return. However, everybody who has ever opened a lemonade stand knows that those who risk the reward also risk getting stuck with some lemons.

It is a firm understatement of fact that $700,000,000,000 (700 Billion dollars) is a lot of money - even judged by federal government standards. And, it is also true that the markets need help - I am not so Pollyannaish as to say that we should let complete economic meltdown occur without any action.

However, those who buy too many lemons - whether for loans or for a lemonade stand - should bear the responsibility they took with that risk. It is not the responsibility of the American taxpayer to reward bad economic decisions - and that is what this bailout deal appears to be, a reward of bad economic decisions.

Meanwhile, the earth as God designed it will move on. Fish will start their fall run, deer will start their rut, and the fields will dry up enough to finishing harvesting the crop. And, depending upon the action of Congress, there may be some extra lemons to go around.

Albert C. Pollard, Jr.


Comments



Well said, however (Teddy - 9/29/2008 1:50:00 PM)
what most of us find infuriating is that the Lords of the Universe, those paragons of free market on Wall Street, who laboured so mightily and brought forth all these lemons, and were paid royally for their pains, now want to keep all their gains but demand that the little-guy suckers eat the nasty results, i.e., leave the profits in private hands, socialize the bad results of risk taking, and not punish the perpetrators or even allow "the market" to punish the perpetrators (because, in allowing the market to punish the bad guys the more-or-less innocent little guys and the general economy will take it on the chin, too. Not fair when "free markets" work like that. Who said life was supposed to be fair? For one, human beings, who invented the idea of justice for themselves.


Albert Pollard.... (Flipper - 9/29/2008 3:22:42 PM)
is wrong and his statement is nothing short of political grandstanding - and infuriating.  It is obvious he knows nothing about economics - perhaps he needs to take a class or two and brush up on the subject.

The bottom line is this bill, which was just voted down, is going to inflict economic damage to tens of millions of Americans.  It will kill the financial and credit markets and drive unemployment level skyhigh.

Cities and states across the country will go deeper into the red as unemployment drives tax revenues down.

And imagine the stress on those who are retired or about to retire.        

Get a fricking clue Albert!



Well.......... (gerberdt - 9/29/2008 4:12:34 PM)
As a taxpayer, who has no loopholes, I am sick of paying my taxes and taxes for the giant corporations who don't pay taxes because they are based out of the United States of America. These corporations have CEOs who earn in a few minutes what I earn in a full year, the same CEOs who run a company into bankrupcy but get a severance package worth millions of dollars (Carly Fiorello of HP). These corporations and CEOs have no compassion for the people who were duped into believing they could afford homes they are now losing, but the corporations certainly made millions of dollars off the loans and interest from those loans.  Do I have compassion for these companies and CEO's? Not one scrap!!!  Am I intelligent enough to realize our enonomy is going to go down the toilet? Yes, but if they work as hard at fixing the problems that they created as they did at finding loopholes to keep themselves from paying taxes, I believe they can find a solution that will take care of the taxpayers and not just the "investers"!


Pollard's view is naive .... (ub40fan - 9/29/2008 9:44:35 PM)
like the Republicans and Democrats who didn't vote for this bill.

The effects of trickle down economics are going to show up in a way he'll surely regret. It will accelerate what is already a bad economy for a many Americans.

There is nothing to like about this situation, but the misery of a depression yet to come is worse then this financial medicine to prevent or soften it. I hope Delegate Pollard will be able to keep his farm, hunt and fish,etc. But retire?? probably not .... and his kids ... well I'm sure a reordered global economy will be kind to his and mine.

Sorry I don't really think that. I've been to Shanghai. I've seen first hand the bright youthful faces toiling away in factory jobs for $8 dollars a day. At least that's a bit better then the $1 dollar a day my Dad made at a bakery during the great depression. At least those Chinese youth have a job

Yes those lemon-heads on Wallstreet sure have it coming to them. In a year see how it comes back to you.