One reason why the Bush philosophy of picking up the soap for big money fat cats does not work is that it corrupts. It corrodes government, and the systems that government touches. Here's a brief excerpt from a recent NY Times article demonstrating this:

"For one thing, this argument goes, taxpayers Ñ who now confront plunging house prices, a drop on Wall Street and soaring costs for food and fuel Ñ will ultimately pay the costs. To finance a bailout, the government can either pull more money from citizens directly, or the Fed can print more money Ñ a step that encourages further inflation.

ÒThey are going to raise the cost of living for every American,Ó said Peter Schiff, president of Euro Pacific Capital Inc., a Connecticut-based brokerage house that focuses on international investments. ÒThe government is debasing the value of our money. Freddie and Fannie need to fail. They are too big to save.Ó

Using public money to spare Fannie and Freddie would increase the public debt, which now exceeds $9.4 trillion. The United States has been financing itself by leaning heavily on foreigners, particularly China, Japan and the oil-rich nations of the Persian Gulf. Were they to become worried that the United States might not be able to pay up, that would force the Treasury to offer higher rates of interest for its next tranche of bonds. And that would increase the interest rates that Americans must pay for houses and cars, putting a drag on economic growth...."

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