Why did this bailout bill fail? Here are a few suggestions:
- Senator Obama, Nancy Pelosi and Chris Dodd’s complete lack of leadership. The Democrats control both houses of Congress yet they can not muster enough votes to pass what they see as an extremely important piece of legislation. Senator McCain brought in over 60 Republicans on this issue when he was in Congress over the weekend. Senator Obama called in his support but made little effort to support this legislation, instead relying on his Monday morning quarterbacking skills to praise or denounce the bailout vote, whichever was needed politically. Chris Dodd, Speaker Pelosi and Barney Fife, I mean Frank, could not even get their members to agree on this bill, choosing instead to blame others for its failure.
- Politics. I don’t mean Presidential here either. The Democrats wanted to be able to blame the Republicans for passing this bill. 13 of 19 Democrats who are in tight races across the country voted against this bill AFTER they saw the Republicans voting against it. If it passed with Republicans putting it over the top, the Democrats would run stories and ads about how they didn’t really want the bill.
- Wall Street. When the bill’s passage seemed certain stocks looked good. However oil prices shot through the roof on speculation that consumers would have a lifeline to borrow from this winter to pay for oil. As the bill failed stocks fell. And now faced with the possibility that consumers could not afford to pay for oil this winter, oil prices fell to under $100 a barrel. Wall street traders and speculators were once again left to find their own solutions and face the fact that they may lose money this year.
- The American People. Finally enough of us woke up and said ENOUGH!, let Wall Street fail, we’ll cut back, we don’t need all this credit. Unfortunately, there is little we can do to prevent eventual passage and we will have to swallow a $700 billion dollar pill in order to save a couple bucks, and I do mead about $2, in our 401K accounts.
- World Markets. They need this just as much as our market. They hold many of these bad debts and don’t want to lose money on them either. Yes, Asian and European markets will get some of this $700 billion. But as they begged for us to pass a bailout to save their economies, the people of these countries continued to rally against America and it’s trade policies. Perhaps some of our Representatives finally realized that not all of $700 billion will go to Americans.
- Stupid Partisan Speeches. Only one party to blame here and it is the Democrats. When Speaker Pelosi stood up and said that Bush and his “right wing ideology of anything goes, no supervision, no discipline, no regulation” was to blame for this bailout, she effectively killed the legislation and allowed Republicans to not only make a stand but also push for more insurance on deposits and other provisions they wanted in the bill.
- Lastly, the Media. America is at the beginning of a recession. However so far it is the mildest recession in our nation’s history. Today my newspaper reported a jobless rate of 6.1%. When I moved back here 10 years ago the jobless rate was hovering between 8-10%. Wages have gone up steadily until recently and it was only after the minimum wage bill passed in PA (now 7.25/hr) and the Congress that unemployment stated to rise because small employers could not afford the increase. By the way out of their laundry list of promises they made when they were regaining control of Congress, the minimum wage adjustment is the only one that has passed. All of the others (think Iraq) have failed or not even been discussed out of committee. Yet the media continues to prey on the fears of all of us and attaches stories about the Great Depression to discussions on the bailout. Perhaps they played their monster in the closet card one too many times this week.
In the end the result of the bill was the same- Republicans are to blame for the economy, according to Democrats. If it passed it would have been a Republican President and Congressional Republicans who forced it on every one of us. The news article in my issue of the Time Leader would have read ” Rather than repudiating their President for this mess, Republicans chose to support their President’s failed economic policies.”. When it failed it was the Republicans who killed it because they did not support their President. As the Times Leader paraphrased Barney Fife, oops again, Frank today “Rather than a repudiation of Democrats…Republican’s refusal of the bailout was a rejection of their President.”
I still hold to the fact that all Americans are to blame for this situation and not any one party. Certainly rules were relaxed and it started when Clinton was in office and continued through Bush, but Americans did not have to accept money we could not pay back. Case in point. When I bought my house I was approved for a mortgage up to $150,000. After laughing my ass off because I knew that the mortgage company had been drinking while doing these numbers, I chose to go with a mortgage I knew I could afford. There are many others who took the full amount, thinking they could or would be able to afford it and are facing foreclosure because of that decision. That’s not the fault of your leaders.