The House rejected the big bailout today and the Dow responded by falling 700+ points.
Most Americans are against this bailout, and that ought to be a warning to Democrats.
Why, you say? Isn't it Republicans who are responsible for this mess?
I don't expect the average American to understand the cupability of the Democrats in the Fannie Mae/Freddie Mac collapse, but I think they recognize that this bill places us firmly on the road to a government run financial system, with no checks and balances, and no discernable way out. I think they also understand that the Democrats only see $700B and start dreaming of who they are going to be writing checks to, vice seeing it as $700B of the taxpayers money that they have to care for wisely and give back.
Without some responsible, quasi-governmental oversight body, like the Resolution Trust Corporation from the S&L: disaster days, we will have little faith that Washington is protecting us. Attempts to introduce checks into the legislation were at first rebuffed by Democrats, then, the legislation was treated as typical congressional fodder, with the Dems laying out gifts to contituents like ACORN. The House GOP tried to introduce real market reforms into the bill, with slight success (and only, I might add, after McCain forced the Dems to listen to them).
Finally, Nancy Pelosi just couldn't contain herself and blamed George Bush and the rest of the Republican party for a problem largely caused by Democrats and Clinton-era housing policies.The Dem story line now is that Republicans, in a fit of pique over the Pelosi speech, abandoned the bill.
But, the good American people (and Democrats) now need to look at Nancy Pelosi as one of the most ineffective, and perhaps incompetent Speakers of the House in history. Not only has the house failed to enact ANY significant legislation under her leadership, despite a 30-seat majority for Dems, they have massively failed when given the opportunity to pass bills that would have had huge bipartisan support, like an energy bill, and this bill today. One has to ask, instead of whining about Republicans who abandoned the bill, what about the 50 or so Democrats who didn't tow the party line? Why couldn't Pelosi and company get these guys on board?
When the 111th Congress reconvenes, the Dems really need to consider whether Pelosi is up to the job.