"The Democrats and Republicans are debating and not agreeing on the bailout. 1. What precisely are they not agreeing on? No he said/she said bullshit but exactly what the difference is:"

Sadly, Pat, I think some of the debating has to do with who gets credit for what as we head toward a hotly contested presidential election. I would say ignore this stuff and stick with the simple fact that we need a real solution here not a bunch of mumbo jumbo. This is where "conservatives" get to step up to the plate and live up to that title. I'll elaborate below.

"2. Obama has stated that this was probably the worst financial crisis that we have faced in 75 years but to "Call him and we will be there". If this is what he says it is don'tcha think that maybe it might be a good idea to jump in?"

This is talk radio spin. It's not worth discussing and it's nonsense. This is the kind of stuff I suggest you ignore, Pat.

"Trust me the future of my 401's is a hell of lot more important than a Friday debate on foreign policy? No please don't multitask on this one. Full attention please."

Yes, you and a lot of Americans are concerned about their money and what is happening. It's no joke and likely the decision they make on this is going to considerably alter the landscape going forward. Those who are really debating this in Washington are well aware of this. In the short term this crisis will have a serious effect on who gets elected president and it's obvious that this situation favors Obama-Biden in a big way. Both McCain and Palin are clueless on economic issues and therefore would be a disaster in the White House in this respect. I don't say this because I favor Obama in this case, Pat, it's a simple statement of fact. We need bright people with the ability to examine all of the available data. McCain and Palin are just drum beaters that will follow bad advice and their campaign has shown this. That makes them dangerous to your 401K, Pat, and I am not just kidding around here.

"3. Why not face off in Washington operate under pressure and see what each is fighting for? Then we will definitely know what your stance is. Cannot vote present in this one."

This is true, Pat, there is no voting present on this one because the person that gets elected will have to deal with the fallout from what they decide. It's very ugly and if you are ever going to come to terms, Pat, with the idea that the Bush Administration has provided us with 8 years of bad decisions, wholesale deception, and weakened our ability to deal with a crisis...well...this is it, your money is now literally where your mouth is.

I am against the bail out. I think it's a bad idea. I am not an economic scholar and would not even pretend to be able to offer a solution to a financial crisis of this magnitude but I do believe when you have a problem it is best to talk to an expert. The economic scholars of this country are going crazy writing that this bail out is a bad idea...funny these are the Harvard and MIT guys (as well as some 200 other universities) that the political wing of the RNC seems to like to smear to win an election but now they have turned to them for a solution in a crisis. I am a firm believer in problem solving in this way. You find the best guys in the field and ask them, get a consensus, have the right people analyze the data and make an educated decision.

I'll leave you with the words of a Republican that is actually acting like a conservative (at least how I define it) and that also wants to listen to all those scholars from the fancy universities. This is what your "conservative" movement needs to get back to, Pat, if they want to rise again in this country and provide an honest balance to the Democrats. Forget all this "culture war", religious zealotry, Sarah Palin crap and get back to the foundation of what the party stood for, solid financial stewardship...sold down the river when they elected Reagan and moved into the land of voodoo trickle down economics and divide and conquer through culture war politics. Your "conservative" movement was slaughtered on a golden altar behind the White House while they were swearing Reagan in and it did not die well.

Here's a twinkle of it though, Pat, in the words of one Sen. Richard Shelby of Alabama (of all places!)...pay close attention to what he says, Pat, because he is being a conservative here...ask Dale...I think he'll back me up on this:

"Secretary Paulson presented Congress with draft legislation that would grant him sweeping authority to spend up to $700 billion in taxpayer money to buy illiquid securities. The stated goal of this scheme is to return confidence and liquidity to our credit markets. I do not believe this is the right approach. We did not get into this situation in a matters of days, and we are not going to fix it in a matter of days.

Proponents of the Paulson plan are telling the American people we can solve this problem with a single bill. I don’t believe that is credible. We have a number of interrelated problems that need to be addressed in order of their significance. First, and most urgent, is liquidity. Then we must address the solvency of our financial institutions and declining home values, not to mention our entire regulatory structure.

I believe Congress can address the liquidity issue by increasing the combined resources of the Federal Reserve System and the Treasury. By enhancing the Federal government’s existing lending facilities and guarantee programs, we can help stabilize money market funds and provide loans to troubled financial institutions without exposing taxpayers to massive losses.

Thereafter, we must determine how to address the troubled assets on the books of financial institutions and continue the process of dealing with declining home values. This will likely be a long and difficult process. We must recognize that now.

Even if the Paulson plan works perfectly, which many doubt, including nearly two hundred economists, it will not stimulate new lending, stop de-leveraging, help distressed home owners, or jump start the economy." - Sen. Richard Shelby (R-Ala.) 9/25/08

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and to sober you further:

To the Speaker of the House of Representatives and the President pro tempore of the Senate:

As economists, we want to express to Congress our great concern for the plan proposed by Treasury Secretary Paulson to deal with the financial crisis. We are well aware of the difficulty of the current financial situation and we agree with the need for bold action to ensure that the financial system continues to function. We see three fatal pitfalls in the currently proposed plan:

1) Its fairness. The plan is a subsidy to investors at taxpayers’ expense. Investors who took risks to earn profits must also bear the losses. Not every business failure carries systemic risk. The government can ensure a well-functioning financial industry, able to make new loans to creditworthy borrowers, without bailing out particular investors and institutions whose choices proved unwise.

2) Its ambiguity. Neither the mission of the new agency nor its oversight are clear. If taxpayers are to buy illiquid and opaque assets from troubled sellers, the terms, occasions, and methods of such purchases must be crystal clear ahead of time and carefully monitored afterwards.

3) Its long-term effects. If the plan is enacted, its effects will be with us for a generation. For all their recent troubles, America's dynamic and innovative private capital markets have brought the nation unparalleled prosperity. Fundamentally weakening those markets in order to calm short-run disruptions is desperately short-sighted.

For these reasons we ask Congress not to rush, to hold appropriate hearings, and to carefully consider the right course of action, and to wisely determine the future of the financial industry and the U.S. economy for years to come.

Signed (updated at 9/25/2008 8:30AM CT)

Acemoglu Daron (Massachussets Institute of Technology) Adler Michael (Columbia University) Admati Anat R. (Stanford University) Alexis Marcus (Northwestern University) Alvarez Fernando (University of Chicago) Andersen Torben (Northwestern University) Baliga Sandeep (Northwestern University) Banerjee Abhijit V. (Massachussets Institute of Technology) Barankay Iwan (University of Pennsylvania) Barry Brian (University of Chicago) Bartkus James R. (Xavier University of Louisiana) Becker Charles M. (Duke University) Becker Robert A. (Indiana University) Beim David (Columbia University) Berk Jonathan (Stanford University) Bisin Alberto (New York University) Bittlingmayer George (University of Kansas) Boldrin Michele (Washington University) Brooks Taggert J. (University of Wisconsin) Brynjolfsson Erik (Massachusetts Institute of Technology) Buera Francisco J. 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