People are starting to ask this question in different ways. Why does anyone believe that the massive bailout now pending will actually “solve” the problem? Or, what happens if it doesn’t? This from CNN . . .
Sen. Richard Shelby of Alabama, the top Republican on the committee, cited Paulson’s previous plan to save Fannie and Freddie as well as its role in keeping Bear Stearns out of bankruptcy as illustrations of the limitations on what the federal government can do to protect markets.
“You can’t assure us this will work because you thought the other plans would work,” Shelby said.
One of the truly fatal decision flaws is to frame decisions such that there are only two options, one that appears necessary, and one that appears fatal. It’s not really a decision then, is it? Against that backdrop, it is nearly impossible to have a rational dialog about uncertainty, trade-offs, and alternatives, three key components to making a quality decision.
Tags: decisionmaking, bailout, Shelby, Paulson
