How can seemingly bright people keep proposing absurd bailout...

How can seemingly bright people keep proposing absurd bailout plans one right after another after another after another? That is the question on my mind today as still another absurd proposal comes rolling in. The latest is from Steven Pearlstein at the Washington Post. Before we get to his proposal, let's quickly list the proposals to date. This started with Bill Gross who I am sure is extremely intelligent but still managed to propose to Bush 'Write some checks, bail ‘em out, prevent a destructive housing deflation that Ben Bernanke is unable to do.' I talked about this in Bill Gross Wants PIMCO Bailout and again in A Gross Challenge. Bernanke soon followed with his Congressional Bailout proposal as outlined in Bernanke Proves he is a Complete Fool. I am sure with his PhD he is actually a brilliant man, but nonetheless his proposal is complete foolishness. Barack Obama who is both very intelligent and extremely articulate offered a bailout proposal that is best described as from 'Outer Space'. I talked about his proposal in ARM Interest Rates Jump Most on Record. This was followed by Bush's proposal to bailout lenders as outlined in Bush Moves to Aid Lenders. Bush at least has an excuse. No one has ever accused him of being bright. The latest bailout proposal comes from Steven Pearlstein at the Washington Post as outlined in Forestalling Foreclosures.