David Brooks pronounces the government's bailout of Wall Street a huge success. This is an interesting assessment. It is true that the financial sector profits are at a record high as a share of all corporate profits and the financial sector has reached a new record share of private sector income, and the industry stands to pay record bonuses this year, but these may not be the best measures of success to people other than Mr. Brooks. There is little doubt that if the government gives enough money to the Wall Street banks that they can stay afloat and prosper, as they have shown. However most taxpayers might have preferred some benefit from the trillions of dollars lent or given to the Wall Streeters other than being able to read about their high lifestyles in the gossip magazines or Goldman Sachs $500 million (@ 2 percent of its FDIC loan guarantee) contribution to charity. Brooks also wrongly characterizes Treasury Secretary Timothy Geithner's view of government: "you’d probably say that he starts with a set of fairly conservative instincts about the role of government." His actions during the crisis suggest otherwise. He seems to believe that the government is obligated to play a very large role in protecting large financial institutions and their executives from the consequences of their actions. This makes him a classic nanny state conservative.
--Dean Baker
