Mom of all Bailouts - smart timing?

One thing about the bailout package for the US financial sector that stumps me is the timing of it all. It is so obvious that the timing would work to the advantage of the Democrats that it begs the question: why did Bush go along with the plan?

Did President Bush have something else at the back of his mind when he initiated this move? By proposing to inject about a trillion greenbacks into the financial world, was he trying to preempt a prospective Obama presidency from having the leverage to be able to spend more in the future? Was he trying to somewhat limit the ability of the future President to spend beyond his means? If that was the objective, how is it all going to play out for a prospective McCain Presidency?

The way I see it, regardless of the promises made on the stump, the big spending initiative right at the cusp of the elections will change the way the next administration will have to govern. President Bush has, with one swipe, put a damper on the Democrat thirst for over-spending by doing exactly what they would want to do – increase spending! Obama has already been talking about a trillion in additional spending during his administration and President Bush’s action will somewhat limit his ability to deliver on that promise. Even if he does do that, he will have to do it by either raising taxes higher or by spreading the tax net wider which will surely make him pretty unpopular, thus clearing the playing field for a much more conservative future administration. As a bonus, an Obama win effectively puts off a possible Clinton Presidency by at least 8 years!

If McCain wins the Presidency, it will be upto him and Palin to come up with innovative ways to fund the bailout package without increasing the tax rates. They will act as an effective counter check to the spend-thirsty Congress. Of course, even they will be limited and cash strapped, but if they are dead serious about eliminating earmarks, they will be able to find the dough to fund their campaign promises.

No matter how this election pans out, President Bush’s last spending initiative is sure to leave the next administration with a bigger challenge then they had initially bargained for. One of my major gripes with President Bush’s policies has been his liberal spending throughout his term, but if he really did initiate the biggest of them all to help limit future spending, touché!