Politicians Don’t Know What They Are Doing

So, what do economists think of the Senate “bail-out”?

Jonathan Berk, an award-winning finance professor at Stanford University and a strong opponent of the bailout plan, expressed the concerns of many: “I have never been so frustrated, I have never wanted to speak out publicly before on these political issues, but politicians don’t know what they are doing, they know nothing about these issues.”

I think most people understand this instinctively, but for some reason politicians think that only they can save the day by spending money they don’t have.

Economists might be known for disagreeing with each other, but there is surprising agreement regarding the bailout and the causes for the current financial problems. There was no support for the broad bailout being discussed in Washington, and the economists believed that the same outcome could be achieved at much lower cost to the taxpayers.

Someone slap McCain, Corker and Alexander for me.