The American Spectator

br> Australia /p>

Once again, The Bush Administration rushes blindly into the private sector. Ever since “W” ran as a “compassionate conservative,” he and his administration have bent, twisted or mutilated the meaning of conservatism. In the book of Matthew, we are clearly told, “Ye shall know them [trees] by their fruits. Do men gather grapes of thorns, or figs of thistles?” Do true conservatives create the largest government bureaucracies known outside of Communist ruled countries? Do conservatives add multibillion dollar Medicare prescription programs to already existing government handout programs? Do even the most compassionate conservatives seek to interfere in essential family affairs (i.e., Terri Schiavo)? RiNOs yes, but not true conservatives.

Philip Klein is correct that the Fed helped bring on this crisis with its quick fix slash and burn programs. The Fed is not nearly as smart and responsive as the “invisible hand” of the public. The real estate markets were not suffering some imagined “irrational exuberance,” but were deeply under the influence of people keeping their eyes on the short term rates and gains and not the long term realities. While it is highly unlikely that the American tax payer will get stuck with the bill for Bear Stearns, the possibility of being stuck was never existed until the Fed stepped in and offered our money as collateral. Let those who sought to profit be also the very ones who pay for the risks. This government backed buy out, a graceless form of corporate welfare, sets a loathsome precedent and opens the GOP to class warfare attacks, as noted by Mr. Klein.

Many people bet low interest rates would last a lifetime. They were wrong. Bailing them out, while a feel good move in the short term, is destructive and immoral in the long term. If people are unwilling to invest their own capital, then they are best off investing not at all. But if the government removes the risk, it is removing reason and caution. It is allowing the public to play Russian roulette with someone else’s head pressed to the muzzle.

p>Chairman Ben Bernanke would be well served by hanging a plaque with the words of the brilliant warrior and U.S. General, G.S. Patton, “Take calculated risks. That is quite different from being rash.” br> — Ira M. Kessel br> Rochester, New York /p> p> I think Mr. Klein is hyper-ventilating. Is there a practical difference between bankruptcy and selling for $2 per share? If this is a bailout, it is very niggardly as U. S. bailouts go. br> — Ty Knoy br> Ann Arbor, Michigan /p>