Friday, November 21, 2008

Wired-o-Nomics: Too Big to Succeed?

It seems like forever but it has actually been only been 52 days since Congress thought the better of providing any bailout money to financial institutions to stave off global economic ruin. They heard the arguments for and against, checked the election calendar, and voted down a $750 billion package.

The market immediately tanked. The Dow Jones Industrial Average shed more than 600 points the next day to close at 10,365 (which frankly seems pretty bullish these days).

So lawmakers took another look at it. They heard the arguments for and against, checked the election calendar, watched with as much amusement as the rest of us I hope when John McCain "suspended" his campaign to take charge of things, and voted up a $750 billion package.

The market immediately tanked. On Thursday the Dow was down 33% from the day the original bailout plan was rejected a mere seven weeks earlier.

This is called, in polite company, the law of unintended consequences. It’s called less pleasant things in less genteel circles.

Read the full post on wired.com's Epicenter blog.

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