The Washington Post joins the NYT in presenting the political philosophy of President Bush on Easter Sunday, telling us that the president's back seat in the Wall Street bailout efforts is "a matter of principle." Sure, maybe the president has developed a carefully thought out economic philosophy, but let me suggest an alternative hypothesis. The financial industry gives much of its money to Democrats (ever hear of Robert Rubin?), unlike the oil industry, the defense industry, or the pharmaceutical industry. It's just possible that President Bush is not as eager to come to the aid of the Wall Street big boys as he is to come to the aid of other industries because they back the Democrats. I don't know President Bush and don't know the real motives for his actions. But, I also don't believe that the Washington Post knows the real motive for his actions. Therefore, I would recommend that they just put the possibilities on the table and let readers decide for themselves whether politicians are acting based on political considerations or are guided by some underlying philosophy. Btw, the main feature of the $300 billion housing price support program mentioned in the article, which is backed by Senator Chris Dodd and Representative Barney Frank, is the government purchase or guarantee of up $300 billion of bad mortgage debt held by banks and other investors. It would also allow for the renegotiation of loans for homeowners, but many would still be paying far more in ownership costs than they would to rent the same home, and would still have almost no hope of ever acquiring equity in the home.
--Dean Baker
