Monday, September 29, 2008
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Doubling Down on a Bet
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Posted by:
Carol Platt Liebau at
2:56 PM
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More than half the House Democrats voted for the bailout bill. Much more than half the Republicans voted against it.
By doing so, House Republicans have shown themselves to be gamblers. If all of this turns out all right despite the absence of a bill, kudos to them.
But it's a big gamble. If the economy now tanks, they will be blamed, unfairly or not. From here on out, the Democrat and the media meme for any disaster will be, "Republicans could have prevented it, and they didn't."
Anyone who thinks their voters will admire their principles, should this grow worse, is dreaming. Concerns like creeping socialism vanish pretty quickly if 401Ks are disappearing in a pouf of smoke. "Main Street" won't be grateful, either, if credit dries up and they're unable to get a line of credit to meet payroll. At that point, they will then turn to the Republicans who voted against the bill on their orders and say, "Why didn't you know? You were supposed to use your judgment!"
All the stuff about Pelosi's partisan speech and the fact she couldn't bring along more than 60% of her caucus won't matter. What voters will remember (and what they will be told) is that Democrats took a hard vote to avert disaster; Republicans refused. It will be a huge setback not only for the GOP brand, but more importantly, for free market principles, which will appear to have failed. And then good luck averting even worse legislation than this was. As I've noted
Of course, if the gloom-and-doom scenario never materializes, it will be because John McCain was right in stating that the fundamentals of the American economy are sound. But the problem with a crisis of confidence like the one we've seen is that things spiral downward for little cause (or no cause at all).
I'm hoping that the people voting against this weren't the ones who needed glossaries earlier in the week to learn what all the financial terms meant. I'm hoping that we're not reaping the whirlwind for a generation of "education" that's neglected basic economic literacy, and instead substituted a bunch of class resentment and populist rhetoric.
What people need to understand is that if Wall Street collapses, eventually, everyone is going to feel it, in a way that's going to be very sharp and very ugly.
Update: The comments below are instructive. But to my friends who say, "Better a Great Depression than losing our constitutional state" (or words to that effect), check my post from Friday. I noted then the historical fact that many of the Big Government elements we deplore most today were introduced as the country writhed in the throes of the Great Depression, and people were desperate.
If things go badly downhill, what, exactly, do they think will happen again? Market principles will be deeply discredited, and we will all get much, much more socialism -- and more constitutional incursions -- than we would have, even with this far-from-perfect piece of legislation. The TVA, NRA, CCC, etc. would look like child's play, as President Barack Obama, Nancy Pelosi's Congress and Harry Reid's Senate construct a statist superstructure that could never be completely eradicated.
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The greater gumble is 'trusting' the same thugs in Wall Street, and Bush, whose compassion has gone wrong, with more money without any accountability. The Wall Street Thugs and Bush et. al. should go to prison for this mess. About our markets tanking. That is fine. Why? I'd rather we let these risky ego-driven-crooks fail then we can build up a stronger market, than to bail them out so that they can get paid to bankrupt us and then paid to 'save us'. Who trusts these thugs to actually use the $700 billion to 'save us'?. If they can't manage the credit line of $100 billion, how will they manage $700 billion? We want names, and restitution BEFORE we can discuss any type of bail out! Giving an arsenist the contract to rebuilt the building is A BAD DEAL! |
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You seem to have bought into this made up 'crisis' story. Once we get the names of the crooks whose greed lead to their success and the bankruptcy of wall street, then we can move on to discussing a 'rescue plan'. Until then, WHY RUSH? Bush is acting in panic and the Wall Street Kabala is quick to take advantage of his panic. We need to SLOW DOWN and make sure the SOLUTION IS PERMANENT - No deal, and no panic will be enough to make up for the 'surge' of foreclosures following this mess. Why should the people who are current on their mortgages stay current if by defaulting they can get lower rates? How is it that 10% of bad mortgages are making our market collapse? If this deal is so good then why is it being developed behind closed doors and in it there is language that NO COURT OR GOVT. AGENCY would review or revoke it once it's signed into law? This stinks from the whitehouse to wall street. And if its a gamble not to sign a bail out, it's a worse gamble to sign over $700 billion without any accountability or transparency.......... |
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The Democrats have the number to pass the bill without any Republican support. Obviously the bill is flawed if Pelosi couldn't get her own party in line behind her on the thing. The Dems can squawk all they want to but they can't lay this at the feet of the Repubs. |
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We can survive the collapse of our economy. But we cannot survive the demise of limited constitutional government in America. The markets showed a small drop. I think Washington should stand back and let a free market economy sort it all out. The fundamentals of our economy ARE sound and government makes everything worse. This socialist bailout did NOT fix what ails the markets. It deserved to die. |
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"Republicans could have prevented it, and they didn't."
The Democrats have a Bailout Bill and enough Democrats to vote the Bailout Bill through the House. Guess What? 60 Democrats know the Bailout Bill stinks!
Wall Street took advantage of Bernard Baranke and the Federal Reserve...and lost on the housing bubble after being warned since 2003 by non other Geoarge Bush.
Barack Obama - "on the take" from Barney Frank’s Fannie and Freddie! Christopher Dodd - $165,400, Barack Obama - $126,349, John Kerry - $111,000.
http://www.opensecrets.org/news/2008/09/update-fannie-mae-a nd-freddie.html
The cards are dealt for John McCain. All he has to do is have the guts to do what he didn't have the courage to do in the debate: Play the hand. Make Wall Street PAY! http://www.newsmax.com/morris/mccain_against_bailout/2008/ 09/29/135431.html
Sarah’s friends at: America Deserves Better PAC presents OBAMA at his best AD! http://www.youtube.com/watch?v=t6-K7JwwV0U
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There was 60 Democrats who voted against the Reid and Pelosi Bailout Bill because it stinks.
The RINO'S who voted for the bill are up for reelection and the others have big hearts.
Barack Obama - "on the take" from Barney Frank’s Fannie and Freddie! Christopher Dodd - $165,400, Barack Obama - $126,349, John Kerry - $111,000.
http://www.opensecrets.org/news/2008/09/update-fannie-mae-a nd-freddie.html
The cards are dealt for John McCain. All he has to do is have the guts to do what he didn't have the courage to do in the debate: Play the hand. Make Wall Street PAY! http://www.newsmax.com/morris/mccain_against_bailout/2008/ 09/29/135431.html
Sarah’s friends at: America Deserves Better PAC presents OBAMA at his best AD! http://www.youtube.com/watch?v=t6-K7JwwV0U
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to this bill for the last week. 40% of the Dems became born again fiscal conservatives today.
Better a capitalist society in a depression that a socialist one in a resession that would last for decades.
The free market rides again. It may die with its boots on but that the way it should be, not through government mandated nonsense. |
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Newt. You want to change sides when the battle gets too rough. You people want to always be on the winning side therefore you have no true convictions. You stand for NOTHING!
Go change your voters registration to Democrat and let it become official.
Seems like our Republican team is dissolving before my eyes. When I was in Vietnam and a fire fight broke out, you were always disappointed in your fellow teammates that turned coward.
But hey, "those who run away live to fight another day" -- Perhaps. |
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voted against the bill according to Marketwatch. If 95 of 235 Dems weren't sold, the bill must have some serious flaws. The Dems could have easily passed this on their own if Pelosi had them all on board.
We all know Pelosi will blame the Repubs, but it's her own mismanagement that has resulted in a Congress with a 9% approval rating. I would suspect this number will now go up.
BTW Sarah, it's Barney Frank and Chris Dodd that need to go to prison. They're the ones that have fought to reform Freddie/Fannie for years. Of course Dodd got a "sweetheart" mortgage deal from Countrywide. Follow the money. |
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"Never" be eradicated? Seems to me that is a matter of will.
III |
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You know, these HUGE corporations are only loaning money to, wait for it, loaning money to, wait, wait other HUGE corporations. The banks in home town America are going to have plenty of cash for you to buy a car, get a home, or finance your business. The fact of the matter is that the reason the FED is so angry is that it is going to cut the FED's friends business profits. |
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The only thing in that whole G-D 110-page bailout bill that would work and possibly save the economy was the less than one-page provision giving the SEC authority to suspend the Rule 157 accounting rule. Everything else was worse than useless fluff. It was what the market was counting on and lawmakers quietly squeezed in, hoping it wouldn't get noticed, because then the Dems would have to admit that regulation caused the crisis, and Republicans would have to admit that Bush's bureaucracy is indeed leftist.
If Republicans had the gumption to go out on their own and offer similar legislation as an emergency matter, it would get passed, and the economy would stabilize.
And as for your argument that if we don't get this bill and the economy collapses, Americans will turn toward heavy statism, so we should support the bill: Wrong. The opposite is true. If this bill is passed, it will cause more problems over the long run, and that will lead to massive state intervention in the economy during the next Presidential term. |
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Seriously - whether or not the $700B number is an accurate assessment of the need, how did this suddenly happen - big numbers like that don't sneak up on you, they build.
Where were the alarm bells going off over the past x months at AIG before they all of the sudden needed $40bn in bailout - who called their loan? |
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Anyone who actually believes that a Great Depression would be better than this bill are absolutely nuts. A depression wouldn't be just a bummer. It would be deadly. Actual people dying. This society is not equipped to handle a calamity like a depression. |
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has it right. These numbers don't just happen overnight and now we are expected to believe the sky is falling if we don't pass this pig in a poke by tomorrow. Where were all these hot shot economists crying doom and gloom 2-4-7-10 years ago while all this was building??? Did my 401 get hit sure, but I'll either make it up by working longer or doing with less than I planned on. The guvmnt says this is a sweetheart deal cause these 'toxic mortgages' aren't really that bad and will appreciate in value over time. Sounds like a great, long term investment but the market isn't buying and that makes me believe there is a fly in the oinment we aren't being told. Even if we did get our tax money back, I won't get a check and neither will you but I bet my taxes go up. We are spending money we don't have to buy stuff at an unknown cost that no one knows what it ultimately will be worth. Also, there is the problem of the add on's for ACORN and 'making sure the defaulters are given their homes at a price they can afford'. What the heck is that?? Some knucklehead buys a house he obviuosly can't afford thru a 'liar loan' and now I'm supposed to pony up money so he gets to keep it at a reduced rate he can afford. SWEET..!!! Typical guvmnt action, get a bill that will surely pass and add on a bunch of cr*p that has nothing to do with it. Until someone explains to me a whole lot more detail about this, I am against it 100% |
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Not to sound like some religious alarmist/ hysteric, but the Bible (in the book of Revelation) does imply a scenario in which much of the world's financial system will be consolidated or controlled by a single entity, organization or individual (to prevent another global market downfall like the one we're seeing now). The perfect condition for world domination by the "anti-Christ". It's interesting how there's already more talk and urgings to create such an entity, given the current economic chaos. |
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you realize. BO has stated that he is the "one we have been waiting for". Perhaps he means the one antiChrist that must appear and sow the seeds of the apocolypse. Considering the adoration for the "messiah", he fits the description a little too closely for comfort. |
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It is socialist melding by our illustrious Comrades of the Democratic Party and over burdensome government that got us into this mess in the first place. Now the MSM are looking at the very people who caused this to pass a $700 billion bill to get us out! I am sorry but that is not the answer. As Ronald Reagan said, "In the problems that this country faces today, the Government is not the solution; Government IS the problem."
I would rather loose the Republic in a Thermopylae type fight agaist the social fascist than to comply with a slow march toward despotism and slavery to the social elite. |
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