I believe it was a good idea for John McCain to go to Washington vs hang out in some small town talking about his resume. I also believe it was good to confront the Democrats and not let them have a “bipartisan” bailout plan which has no resemblance of bipartisan negotiation. The discussion should (if the press cared) have also exposed the limited commentary or knowledge of Sen. Obama regarding economic policy as he (understandably) has decided it is in his best interest to stand aside and do nothing (whose idea of leadership is that?). But, by scuttling the plan without pressing for explicit changes, or by making things more complicated does nothing.

I am a big believer in allowing the free markets to price and fix most issues, but the Republicans who are hoping for a market fix must wake up to the fact that the market is so comatose right now that there is no way to expect a flow of capital or a stabilization in financial markets without a “lender of last resort”, in this case the government. As a taxpayer I take issue with the idea that the government would buy loans at “hold to maturity” levels without some form of indemnification against losses and I doubt that the pricing issues have been even discussed; as an opponent of big government I take issue with the siphoning of funds to a Housing Trust Fund which reaks of the new Fannie/Freddie for the Dems; and finally as a bank analyst I take issue with the idiotic premise that cram downs on mortgages (which they want as required) will not actually raise funding costs to borrowers, which is the opposite action to what we should be looking at. I see all these as justifyiable issues. It is McCain’s job to lay these on the table and fight for a new plan, or force the Dems to walk alone.

In the end, he must have a justifiable reason to object. One based on economics and principles as opposed to trying to separate from the administration. McCain is a “maverick” I just hope he didn’t bring a knife to a gun fight.