Trouble Beyond the Emergency Bailout

' Big Government to the Rescue ' : Readers were clearly frustrated by the struggling economy and political gridlock over the bailout. "Washington is stumbling blindly through an economic minefield while we watch helplessly from the sidelines," one said. Another resented the "zero-oversight policy that all but begged Wall Street to get drunk on greed, promote ridiculous credit schemes, crash into a fiery inferno, retire in style and bill us for the wreckage." And one simplified things: "If we keep spending beyond our means, we'll have one financial crisis after another."

On ' The Ur-Text of a Tabloid Age ' : "I wonder if the bailout crisis is causing angst in the National Enquirer's offices. What to cover now: the breakdown of the American economy or the rumored breakup of Brangelina? Lehman Brothers or the Jonas Brothers?"
Nina Gaspich, Chicago, Ill.

Rescuing a Crumbling Economy
How interesting that the very proponents of smaller government when it comes to the interests of the little people are now ready to become big government and rescue Wall Street fat cats ("Big Government to the Rescue," Sept. 29). Aren't these the same leaders who championed free markets and deregulation for the past three decades? Why should they be bailed out while people are losing their homes because of the greed and deception of these very firms? A bailout that does not include help for those in lower income brackets who have purchased reasonably priced homes would be grossly unfair. Perhaps all at-risk loans for first homes under $250,000 should be restructured depending on the income of the owner. Certainly bankruptcy courts should protect the homes of these people first. And it would be a crime to allow the perpetrators of this debacle to make millions from taxpayers.
Mary Bagwell
Atlanta, GA.

Bundled mortgage securities insured with credit default swaps sold by pseudo-bankers (mortgage brokers) and real-estate agents on steroids? Who needs regulation when juvenile delinquents can run things? This crisis has been caused by pretend loans for pretend buyers from pretend adults with pretend insurance. And now the Wall Street suits are running to Mommy for a nearly $1 trillion bailout. Mommy, confused, scared and forgiving, admonishes her brats and caves in. Socialism for greedy, immature capitalists, and scraps and debt for the peasants? Why are we surprised? They should be required to pay it back, say at 5 percent of future profits. What a concept—that banks requiring us to pay our debts be required to pay theirs.
Tom Evans
Bemidji, Minn.

In your cover story, Fareed Zakaria erroneously claims that this crisis "should put an end to false debates about government versus markets. Governments create markets, and markets can exist only with regulation." The market is created by human instincts, not by the government (and democracy was born in the market, not from any great philosophies or ideals). Neither the market nor government is perfect, but the difference is that the former punishes incompetence and the latter subsidizes it. Whom would you rather have running things, those who punish incompetence or those who subsidize it? Zakaria further claims that with Treasury Secretary Henry Paulson, "America is extremely fortunate to have a man of tremendous intelligence, drive and pragmatism." No one would have disagreed with Paulson when he denounced "irresponsible practices" under which mortgages were sold to unqualified buyers and "sliced and diced" all over the world. According to him, "What has gone on here is terrible, inexcusable." Where was he when this behavior was rampant on Wall Street? Until May 2006 he was running a leading investment bank that was doing quite a bit of slicing and dicing, as John Gapper of the Financial Times has suggested. Now, as Treasury secretary, Paulson declares he's shocked about these "irresponsible practices." His ethical position appears questionable. If Paulson were bold and conscientious enough to donate the $18.7 million bonus he received from Goldman Sachs for half of 2006 to the Treasury's fund and lower the taxpayers' bill, his $700 billion bailout plan would seem more palatable to taxpayers and avoid the impression that it privatizes gains and socializes losses.
Yeomin Yoon
Professor of Finance and International Business
Seton Hall University
South Orange, N.J.

Daniel Gross's profile of Treasury Secretary Henry Paulson was an informative and in-depth look at an outstanding, dedicated public servant ("The Captain of the Street," Sept. 29). However, given the task Paulson was about to undertake, I thought the cover of the issue, with the words KING HENRY, did a great disservice to Paulson. Working with all the egos in Congress is difficult enough without being depicted as a king on the cover of a widely read national magazine. I certainly hope that Paulson and Congress can continue working together to get our country on the right track and save our struggling economy.
Jerry Rusch
La Crosse, Wis.

When my job was eliminated because of the lagging economy, I was given my supervisor's verbal expression of condolence, a letter confirming the exact dates of my employment, the chance to buy COBRA health insurance at my own expense and the assurance that I would be entitled to the fully allowable unemployment benefits due me. I hope this is the same generous package that will be offered to all those who lose jobs in the financial-services sector, but especially to CEOs and those in management positions who not only share responsibility for the current debacle but could have afforded to save for leaner times. Certainly the taxes paid by the thousands like me should not contribute in any way to allowing those people to continue living in the kind of comfort I could not afford even before I lost my job.
Susan Bennett Dupuis
Pleasant Hill, Calif.

Let's say you go to McDonald's and order a cheeseburger. I take your order and your money. Then I take your cheeseburger outside and set it down in front of my dog. I walk away and come back a minute later to find a happy dog, but no cheeseburger. Then I tell you it's my dog's fault, not mine, that your cheeseburger is missing. And no, you can't have your money back. This is pretty much what they've been doing with your money in Washington. It will take years to sort out the details of who stole what from whom and how they did it. We haven't even begun to learn of all the corruption, malfeasance, fraud and stupidity that brought us to this, our worst economic crisis since the Great Depression. The one thing we can be sure of is that the American taxpayer is going to get hit hard.
Dave Coyne
Goshen, Ind.

Is Laughter the Best Education?
I enjoyed Narinder Singh's My Turn essay, about using his stand-up comedy to educate Americans about Sikhism ("Standing Up for the Truth," Sept. 29). It must have been petrifying to do stand-up the first time, and I applaud him for using humor to help people see important issues in a different way. When I was growing up, many of my classmates were ethnically and religiously diverse, and I have to admit that I didn't really bother to learn the differences between the regions of India or what religion most people in China practice. But recently a Sikh co-worker of mine kindly explained the symbolism of not cutting his hair and the reason he wears a turban. Fortunately, I felt comfortable enough to just ask him. It must be frustrating at times to answer questions like "What is that dot for?" and "Why do you wear those beanies?" But whether people choose to answer these questions with sarcasm, just a short dry answer, a Web link or humor, as Singh does, I think it's definitely worth the effort. Keep it up.
Marcia Peterson Buckie
Plymouth, Mich.

Narinder Singh's story of teaching others about his interesting religion reminded me of a Sikh taxi driver I was lucky to meet in Seattle once. My 100-year-old father, two teenage grandsons and I were headed to the airport with hours to spare, and our cabdriver offered to show us a Sikh temple in the area. We agreed with enthusiasm, and he drove us to a temple where we donned head coverings, knelt and placed dollar bills (which he gave us) in a lovely offering receptacle. People were preparing food downstairs, and he explained that part of their religion is to offer food to anyone who requests it. Anyone is welcome to eat and sleep overnight in the temple. I believe this man helped my grandsons understand a little about someone who wore a turban. He impressed me with his generosity and his obvious delight in sharing with us.
Harriet Crosby
Via Internet

You Bet ' This Is Important '
A resounding "thank you" to Anna Quindlen for once again getting inside my head and saying so clearly what my friends and I have been thinking for weeks ("This Is Important," Sept. 29). Our country is a burning wreck, and all we hear people talking about is lipstick on pigs and bridges to nowhere. What about qualifications and training and experience? And, especially, what about the truth? I hope your readers will heed Quindlen's call to not get distracted by the "gossip, nonsense or lies" and to pay attention to the issues that concern us all—health care, the environment, the economy, education and the rights women have fought so long for. It seems painfully obvious that if they do that, there's only one choice to make this November.
Wendy J. Padilla
Maplewood, N.J.

Does anyone besides me see the irony in Anna Quindlen's saying that the "time to really focus on the facts is now," and then proceeding to state, apparently as fact, that what she needs is "someone to clean up the mess George W. Bush has made of the country" she loves? Is this Quindlen's view of presenting facts? Does she really think Bush is personally responsible for the "mess" we are in? How about leaving a little room for the development of this mess over time—time that stretches back at least to the Clinton years, time that has permitted Congress, the administrations and the quasi-governmental agencies to contribute substantially to the mess? Until Republicans and Democrats accept joint responsibility, party bickering will continue and our leaders will fail to get us back onto the right path or guide us through these troubled times.
Doug Morelly
Greenville, S.C.

Clarification
Our story "An Apostle of Alaska" (Sept. 15) noted that Gov. Sarah Palin appointed Cora Crome as her fisheries-policy adviser, and that Crome "formerly worked for the United Fishermen of Alaska, an industry lobbying group." Crome did work for the group and gave congressional testimony on behalf of the organization, but she was not a registered lobbyist.