Don't Blame the CRA or the GSEs

Big Picture makes lots of good points, but only partial. Showing that CRA and GSEs were not responsible for everything doesn't prove they weren't responsible for something.

The TARP can make things worse

Alphaville notes that the banking system is in trouble because people prefer to hold Treasuries rather than commercial paper and bank deposits. So how does issuing a lot more Treasuries help?

No Wonder They're Clueless

Most Lawmakers Don’t Have Economic Education
As Congress works on one of the most important pieces of economic legislation in a generation, a Washington research group has pointed out that more than 8 in 10 members of Congress don't have a formal educational background in the business, economics, or finance fields.
"It's interesting that those who are responsible for solving the biggest economic crisis in generations don't have the educational background to know the difference between commercial paper and copy machine paper."

Senate Approves Financial-Rescue Bill

The Senate voted to approve the financial-rescue bill, sending the modified measure back to the House, where its outlook remains uncertain.
And if there was ever a bill more larded with pork to make it palatable (the culinary metaphor doesn't really work, does it?), this is it. That said, the increase in the deposit-insurance limit to $250,000 and the additional funding for the FDIC are both good ideas.

Foreclosure Alley

Completely shocking video, via Calculated Risk. What a neighborhood-in-foreclosure looks like.

Dueling Economists: Experts Voice Support for Bailout Bill

Last week, a large group of prominent economists sent a letter to lawmakers opposing the Treasury’s plan to purchase troubled assets. Today, a separate group of economists have come out in support of the plan. Full text of the letter is here.

Elections should be about Big Ideas

This great piece by Alvaro Vargas Llosa argues that

All elections should be about one thing: the extent of government power. After all, the power of government is what a presidential candidate seeks. And all elections, until such time as a cultural consensus is reached one way or the other, should have at least one major candidate arguing in defense of civil society against too much state power and one major candidate making the opposite argument. Whether they end up doing what they promise is a different matter.

and that McCain and Obama simply don't want to play their parts.