Monday, September 29, 2008

Bailout Agreement Defeated (For Now)!!!

Great news! The bailout bill was actually defeated in the House of representatives by a coalition of limited government Republicans such as Ron Paul and anti-corporativist Democrats such as Dennis Kucinich.

That's one good thing about the American system where members of Congress can vote freely, in contrast to for example the Swedish system where members of Parliament are more or less forces to do what the leaders of their Party tells them. Here we saw many Republicans defy George W. Bush (and John McCain) and many Democrats defy Nancy Pelosi and Harry Reid (and Barack Obama).

We shouldn't celebrate too much, though. There is a very high risk that enough Congressmen can be persuaded to switch sides in a later vote to pass it, especially if the market sell-off intensifies. But even if it ultimately passes (perhaps in a slightly altered form), it is still nice to see this snub to the Republican and Democratic establishment.


Anonymous Joe Wang said...

I don't get this whole bailout. If Bernanke is so concerned about credit slowing down, why not put $700 billion towards a federal lending institution instead of buying up bad assets so other institutions can start lending.

To me, it sounds like paying of my cousin's gambling debts so he can go out and make some wise investments. Why wouldn't I just do my own investing and tell my cousin to work himself out of debt?

5:21 AM  

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