Let me be clear. As I say, inaction is not an option. We have got to shore up our economy. This is crisis moment for America, really the rest of the world also, looking to see what the impacts will be if America were to choose not to shore up what has happened on Wall Street because of the – the ultimate adverse effects on Main Street and then how that affects this globalization that we’re a part of, in our world. So, the rest of the world really is looking at John McCain, the leadership that he’s going to provide through this, and if those provisions in the proposal can be implemented and make this proposal better, make it make more sense to taxpayers, then again, John McCain is going to prove his leadership. … But ultimately, what the bailout does is help those who are concerned about the health care reform that is needed to help shore up our economy. Um, helping the – it’s got to be all about job creation too, shoring up our economy and putting it back on the right track. So health care reform and reducing taxes and reigning in spending has got to accompany tax reductions and tax relief for Americans. And trade, we’ve got to see trade as opportunity not as a competitive, scary thing, but one in five jobs being created in the trade sector today. We’ve got to look at that as more opportunity. All those things under the umbrella of job creation. This bailout is a part of that.

Thank you, and on to your Debate Thread.

My university (Rutgers) is fairly actively encouraging students to register to vote. And I’ve occasionally done a bit to help, hosting students who do a spiel on voter registration and personally encouraging students to vote.

Now I think this is all a good thing. Voting is a good thing, and a healthy democracy requires a decent turnout of voters, so doing our little bit to help democracy is being on the side of the good. It’s not exactly related to the courses we’re teaching, but spending 45 seconds before class is officially scheduled to start encouraging voter registration, or putting voter registration ads on course management software as Rutgers has done, seems far from an abuse of official positions.

Still, voting isn’t the only good thing in the world. It seems to me that voting in the upcoming election for Obama/Biden over McCain/Palin is pretty close to a moral requirement. (For those who are eligible to so vote. I of course won’t be voting for Obama, because that would be illegal, and undemocratic.) But it seems it would be seriously wrong for either Rutgers, or for me, to use our positions of authority to promote voting for Obama. And I think this isn’t a particularly controversial position.

But it’s a little hard to say just exactly why it’s OK for Rutgers (and me) to do what we’re doing, and not do what we’re not doing. Below the fold I have a few thoughts on this question.
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But the seizure and the deal with JPMorgan came as a shock to Washington Mutual’s board, which was kept completely in the dark: the company’s new chief executive, Alan H. Fishman, was in midair, flying from New York to Seattle at the time the deal was finally brokered, according to people briefed on the situation. Mr. Fishman, who has been on the job for less than three weeks, is eligible for $11.6 million in cash severance and will get to keep his $7.5 million signing bonus, according to an analysis by James F. Reda and Associates. WaMu was not immediately available for comment.

Link. Just imagine that WaMu was caught in a moment of uncharacteristic forthcomingness. Was inclined to wax metaphysical about the great comedy that is both Life and the Universe.

Since the collapse of the US financial system became undeniable, I’ve been struck by the number of people insisting that this has no implications for free-market policies because the US (and particularly its financial sector) is not truly a free-market economy. [1]

In the spirit of market economics, I want to offer a trade to all such people. I will agree that
(a) the US is not a free-market economy, and its failures do not constitute evidence against the claim that a pure free-market economy is the best possible form of social organization
(b) no other actually existing society is, or has ever been, a free-market economy, and no actual or conceivable events anywhere constitute evidence against the claim that a pure free-market economy is the best possible form of social organization
(c) In discussion with parties to the agreement, I will not contest the claim that a pure free-market economy is the best possible form of social organization

All I ask in return is that the counterparties to the deal agree not to advocate, oppose, criticise, or comment on any policy or political position that might actually be implemented, to ensure that the purity of the free-market ideal is not compromised by actual experience.[2]

fn1. Since I haven’t checked, I’ll assume that this set of people has zero overlap with those I once debated who insisted that the supposedly superior performance of the US economy over social-democratic competitors demonstrated the superiority of free market economics.
fn2. I’m willing to make the same offer to Marxist-Leninists and (two for the price of one) to combine both offers for free-market Marxist-Leninists

Scott is probably too self-deprecating to point to this excellently “funny and devastating review”:http://www.thenation.com/doc/20081006/mclemee of Bernard-Henri Lévy’s latest effusion, but I’m not him, and hence have no compunctions. It’s impossible to pick out a favorite bit so I won’t.

According to “CNN”:http://politicalticker.blogs.cnn.com/2008/09/24/mccain-camp-to-propose-postponing-vp-debate/, McCain may be a no-show on Friday.

Graham says the McCain camp is well aware of the position of the Obama campaign and the debate commission that the debate should go on as planned — but both he and another senior McCain adviser insist the Republican nominee will not go to the debate Friday if there’s no deal on the bailout.

This reminds me of the famous episode of ‘Have I Got News For You” where the Right Honourable Roy Hattersley failed to turn up for the third time. They replaced him with a tub of lard.

Now McCain, unlike the RHRH, is pretty spry for a guy in his seventies. So a tub of lard probably isn’t apropos. But nominations are now open for objects, creatures or persons that might suitably replace the presidential-candidate-in-absentia. Keep it clean please.

Update: I just saw on MSNBC that David Letterman has already put in his entry for this competition. When McCain cancelled his appearance on Letterman tonight, phoning Letterman in person to tell him that he was rushing to fix the financial crisis (he lied; in fact, he was in a different CBS studio recording an interview with Kate Couric), Letterman invited Keith Olbermann instead. Awesome – I hope that the Presidential Debates Commission follows suit.

For the (numerous) PG Wodehouse fans at CT, here’s a link to the first episode of Marcy Kahan’s dramatisation of Psmith in the City. It’s excellent: Kahan captures the feel of the text, without making it too wordy or quaint. And timely too (though I doubt there are many people currently in the City or on Wall Street who are starting work at 10, clocking off at 5, and feeling oppressed by such barbaric work hours).

One thing that really puzzles me about the great bailout plan is the almost universal acceptance that Paulson should be the one to run it, at least until the next Administration. More generally, I’m surprised by the kid-glove treatment he’s been getting in public discussion, even from people highly critical of the plan.

Let’s stipulate that he’s a smart guy. He wouldn’t have risen to the top in Wall Street if he wasn’t. And, of course, if having smart guys running the show was sufficient to ensure good outcomes, Wall Street wouldn’t be in its current mess.

Looking back at the record, plenty of people have observed that, at least in his public statements, Paulson repeatedly underestimated the severity of the crisis. And there’s nothing in the ad hoc shifts between cash infusions, bailouts and bankruptcies to suggest that he has much more of an understanding of what’s going on than anyone else. As Paul Krugman has said, he’s making it up as he goes along, just like the rest of us.

But the bailout plan is something else. The possibility of a meltdown like this has been talked about, increasingly seriously, for the last couple of years. Yet Paulson responds with a three page document saying “I need $700 billion, no questions asked”. Wasn’t there a contingency plan? Or worse still, was this the contingency plan?

Either way, Paulson should be sacked forthwith.

I was one of a smallish group of bloggers who met Bill Clinton yesterday at the Clinton Global Initiative.¹ The interview was supposed to be exclusively about the Initiative, but about 70% of the conversation ended up focusing on the financial turmoil. For the benefit of anyone who’s interested, my impression (based on notes – no recording was allowed) below the fold. Dana Goldstein, who was at the event too, has more to say “here”:http://www.prospect.org/csnc/blogs/tapped_archive?month=09&year=2008&base_name=bill_clinton_revisits_his_econ.

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Obituaries here and here. I should say upfront that I never met Camejo, but we had many associates in common. The people I knew who had been expelled from the SWP around the same time regarded him with something like reverence; in fact it always seemed to me that he was the one person who could have led the various layers of people who were expelled into some sort of alternative grouping. Perhaps he thought that would have been a bad thing to do; if so, perhaps he was right. He preferred to put his efforts (and his not inconsiderable financial support) into a wider range of (admittedly only somewhat) broader efforts. After expulsion from the SWP he worked for Merrill Lynch; and after being expelled from there he was a major figure in the socially responsible investing movement. According to the wikipedia article, he participated in the 1960 Olympics on the Venezualan yachting team.

We were talking about him over dinner last night and, finding out he was a socialist, my 11-yr-old said “oh well, then he’d have supported Obama”. My response: “I wouldn’t bet on it”. Merrill Lynch outlived him by a week. I’m sorry that he’s gone.

Update: a touching memoir from Louis Proyject gives you a real sense of the man and his world.

Steven Poole is taking a break from blogging, so we can’t get his thoughts on the “clean bailout” as an example of Unspeak. To me the natural association is something like “clean handover” as in “I want a clean handover. Leave the money in unmarked used bills, no tricks and no police, nobody gets hurt”

In July I couldn’t blog about a major episode in the Belgian political crisis – I was on holidays in the Walloon area of Belgium, in a cottage without electricity, and without access to the web. Today there is another sequel in the Belgian political crisis which has now been going on for about 15 months. By now most Belgians are suffering from political depression: they are no longer able to swallow yet another glass of this soap. Yet if anybody out there is still interested (I am, even if also politically slightly depressed), below the fold is a short summary of the last two episodes of the Belgian crisis. Warning: this post requires some knowledge on the Belgian political labyrinth, which I’ve tried to sketch “here”:https://crookedtimber.org/2007/09/19/the-ingredients-of-the-belgian-cocktail/
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Since Daniel is refusing to comment on the current world-historical situation, I refer readers to his comments about the social construction of disability at the Virtual Stoa. Oh, and I’ve had a lot of fun watching the Dalek Work Out video with my kids, which he might like to check out.

I suppose that I ought to make this clear; I’m not going to be writing anything, on CT or any of my other blogs, about the current global financial markets meltdown. This is basically because of my professional commitments; as you know, I’m a stockbroker by trade, and what with one thing and another, I’m in a more responsible position than I was when I started blogging. Going through my reasons in a numbered list:
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