Floyd Norris points out another reason the bailout will not work

Take a page from Douglas North et al., I will simply note that if the institutions charged with managing the process are corrupt, the chance of success approaches zero.

Case in point, Christopher Cox (R-BoughtAndPaid) and the SEC:

The interesting thing here is that we have already heard that the S.E.C. staff almost immediately demanded such changes. Christopher Cox, the chairman, emphasized Tuesday that the commission imposed its new rules after conferring with the Fed and the Treasury. If he consulted with anyone, inside or outside the S.E.C., who actually understood how markets work, I have not heard about it. [emphases mine]

So the two institutions that are battling to be able to say fu with $700,000,000,000 in taxpayer money could not provide Cox with reasonable guidance.

I feel so much better.

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