Monday, September 29, 2008

The Possible Salvation of American Capitalism

The bailout of financial markets backed by the Democratic majority in Congress and by the Bush Administration failed in the House less than an hour ago by a vote of 205-228. The partisan breakdown showed Democrats leaning in favor of the bill, with 140 Democrats voting in favor. However, 95 Democrats voted against the legislation, and along with 133 Republican "No" votes, that bloc was significant enough to kill the proposal.

Members of Congress from both parties reported House switchboards lighting up all morning on Monday with complaints and demands from angry constituents, most of which were imploring members to vote against the bailout. Several House members reported to television media outlets that public outrage had as much impact on the final outcome of the vote as persuasion from fellow House members.

Republican leaders in the House blamed a wildly partisan floor speech by Democratic House Speaker Nancy Pelosi (D-California) in which she blamed the Bush Administration for both the financial crisis and the bailout that she and the House and Senate Democrats helped negotiate with the White House as part of the reason for the measure going down to defeat. The rejection of the measure in the House could be viewed as a no-confidence vote among House Republicans on the tenure of House Republican Leader John Boehner of Ohio. Boehner had supported the bailout after first calling it a "crap sandwich," while an overwhelming majority of the Republican Caucus in the House voted against it. Boehner's future as Republican Leader after the November General Election is now a matter of serious speculation among the GOP rank-and-file.

The Dow is down at this hour -584.06.

House Republicans may have saved American capitalism today.

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6 Comments:

At Monday, September 29, 2008 4:38:00 PM, Anonymous Anonymous said...

David,
"...may have saved American capitalism ..." The Market is down by 770 points. The juxtoposition of those two statements reminds ome of the old "we had to destory the village in order to save it."
No, all you "saved" was a failed political ideology. What you're cheerleading is the Hoover approach to the Great Depression. Remember how that turned out?
You spin away the New Deal all you want - the fact is that it inspired alot of people that had practiclaly given up. The finacial regulations passed in the wake of that served us well until "free market" thinking did away with much of that. Oh yeah, a great day.

SteveMule

 
At Monday, September 29, 2008 7:16:00 PM, Blogger Gary ("Old Dude") said...

I agree with your post. 700 billion dollars of the tax payers monies to save institutions that are now roasting on the fires of greed---no thanks, Banks can only make money by lending it out----maybe they can figure out who is worthy and who isn't----outside of the mortgage lending business and houseing the economy is not in bad shape, the world won't end.

 
At Monday, September 29, 2008 9:55:00 PM, Blogger Gary ("Old Dude") said...

In view of the House vote defeating the bailout bill, it would appear the american taxpayers, still have a majority in the House at least.

 
At Tuesday, September 30, 2008 5:39:00 AM, Blogger bfray said...

I fail to see why we should bale out Wall Street. Why should we excuse their irresponsibility? If the normal perrson on the street did any of the things they did, that person would be in jail. We cannot le thee crooks get away with this anymore.

 
At Tuesday, September 30, 2008 7:19:00 AM, Anonymous Anonymous said...

Bfay,
I agree with you ... to a point. Rescue the Wall Street executives? No!
Rescue the Wall Street Institutions?
Yes, simply because so much of the American Financial System is, like it or not, tied up in them.
I would have liked to have seen a bailout plan where the executives are replaced without any golden parachutes (just a pink slip and the address of the unemployment office, like you and I would get), a return to to 1990's regulation, an increase in the number of regulators - increased regulatory authority ("No, you cannot say no"), greater descretion given to Bankruptcy Judges, and so on. AND an investigation and criminal procedings against anyone where there reason to suspect fraud.
Greater regulation is an absolute must. I googled some the "financial instruments" they were selling/trading/bundling and ... and ... they were selling AIR! These things were, IMHO, totally made up crap!
I didn't like yesterdays bill, however, I dislike, and fear, the idea of doing nothing even more.
The Conservative, ideologes and intellectuals and thinkers and so on that are advocating doing nothing are not, regardless of what happens, are not going to be standing in bread lines, they are not going to suffer the way the folks on main street are going to.

SteveMule

 
At Wednesday, October 01, 2008 8:29:00 AM, Blogger bfray said...

Well Steve, here's something to consider. If we do nothing, oil pricess will drop through the floor; and, in consequence, Opeck will suffer, as well they should. Since oil is the life blood of this country, whether we like it or not, this can not but help us; at least in the short tern.

 

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