The fact of the matter is we don’t know. The US House of Representatives killed the Bailout Bill before it left the House. The markets, to say the least, were not happy and expressed it by losing over a trillion dollars in market value today with the DJIA dropping over 777 points today.
It is hard to tell whether they are right or not. The market clearly thinks they are wrong. However, I still keep thinking about the fact that I pay my mortgage on time and live by my own financial decisions. That said, the idea of my tax dollars going to buy bad debt from companies that made bad decisions, just doesn’t sit well with me. It is incredibly hard to wade through all the various speculation of what awaits us in the next days, weeks and months.
However, as I said before, it is odd that the solution to a problem that was 20 years in the making has a solution that was developed in just days. Part of the other problem I have is with George Bush. He is like the “Boy Who Cried Wolf”. He just has no credibility left. So when he says we need it, one can only look to other sources for confirmation. So then we turn to the Democratic Leadership. I am sorry Barney Frank and Chris Dodd, but you just don’t sound convincing as to why we need to push $700 billion worth of additional debt onto the taxpayers. This was not helped by Barney Frank today playing the political blame card. Let’s face it, between the Democratic Leadership and the Administration, the Bill was not sold to the House Republicans or the the American people.
Now we get to our Presidential Candidates… Barack Obama makes daily calls with the Demoratic Leadership and the Administration. John McCain (allegedly) suspends his campaign on Thursday (which does not seem so suspended) to immediately got to Washington to provide “leadership”. Both candidates show up on Friday for what seems to be a photo op and a post meeting press opportunities. Neither one of them talk with any more confidence or details than anyone else in Congress or the Administration.
So that leads us with the House Republicans. They seem to be the true “Mavericks” of this drama. They kill the Bill and now the Congress goes on “Holiday”.
Maybe, we will find that The House Republicans have it right by forcing the Administration to use their existing laws and regulations to resolve this problem… maybe not. Either way, history will be written over the next days, weeks and months.
I suspect that whatever happens, a lot of people will find themselves without any more political capital and hopefully without their political jobs! — Glenn