Recently I wrote about the need for an exit strategy from all of the government bailouts. In today’s Wall St. Journal there is an op-ed piece by Christopher Cox, chairman of the Securities and Exchange Commission. In it he opines about free markets but saves the best for the last two paragraphs:
For all of these reasons, it is incumbent upon federal policy makers to ensure that the extraordinary actions of the past months are understood to be temporary, and constructed so that they are self-liquidating. Since government programs do not on their own go away, there has to be a deliberate design to eliminate them, and a relentless adherence to execution of that plan. Anything short of this will almost certainly guarantee eternal life for these vast new federal roles.
Focusing on exit strategies now is of vital importance to ensure that we do not stumble along a dangerous path of confusion that may end in far greater financial exposure for the American people, and a far worse situation for America’s taxpayers and investors. If we answer the tough questions now, and make sturdy plans for the future, we can position our mortgage market, our financial services industry, and the broader economy for renewed growth and prosperity.
As Ronald Reagan said, “There is nothing so permanent as a temporary government program.”