Every smart blogger I read, and a lot of economists, are convinced that passing the Paulson/Bernanke bailout, as proposed, would be a big mistake. That’s what I thought.

I tend to favor proposals like Arnold Kling’s to address it by easing some regulatory constraints on banks (and, yes, the federal government would still back up deposits at greater risk than before), rather than having the government buy bad loans and cause an open-ended string of unintended terrible consequences.

Is there much chance that what comes out of Congress will be sensible?

I wonder if McCain and Obama are reconsidering how much they actually want to be the next president…