Tina Fey and a number of commentators have poked fun at Sarah Palin's response to Katie Couric's question about the economic bailout. Palin's answer was indeed a meaningless set of platitudes, poorly delivered.
But which of the other candidates has said anything that makes more sense? The Obama/Pelosi argument that the crisis is a function of deregulation and tax cuts makes little sense. In hindsight, one can always imagine a set of regulations that would have prevented any mistake because you can say that we ought to have had a regulation that said "Don't make that mistake." But, in this case, the required regulation would have required the tightening of lending standards. Who, pray tell, would have been pressing for that? Certainly not the Democrats. They were exerting pressure in the opposite direction and that is their guilt in this thing.
Just what was it that we saw yesterday? In this grand bipartisan moment, Nancy Pelosi decides to make a highly partisan and muddlebrained speech. Some have argued, with some justification, that a speech ought not to have caused Republicans to vote against the bill, but that's an oversimplification. Everyone agrees that there are majopr problems with the bill and, for many Republicans (and not a few Democrats) voting for it required overcoming very legitimate objections in the interest of getting some thing done. It's not as if everyone thinks the bill was a wonderful bit of legislation that will definitely fix the problem. Under those circumstances, you do not, as they say in German, "spucken in der Suppe."
Yet that is precisely what Pelosi chose to do and she is too smart not to have done it intentionally.
John McCain says that bipartisanship is hard. In this instance, it may be impossible.
Some type of action is necessary, but I wonder whether we ought to be purchasing anything. Why not lend money to undercapitalized investment houses and banks demanding the status of a preferred creditor with some vary basic proscriptions on what the infused cash could be used for? Loosen the mark to market rules and let the market dispose of the questionable paper.