Been out of the office today, but here's a few thoughts on the failure of the bailout vote. First this disturbing news from Larry Kudlow:
"A number of Republican House members and staff, along with others who are plugged in, are telling me that Nancy Pelosi and the Democrats will come back with a new bill that includes all the left-wing stuff that was scrubbed from the bill that was defeated today in the House.
As this scenario goes, the House Democrats need 218 votes, and they have to pick up a number of black and Hispanic House members who jumped ship because the Wall Street provisions, in their view, were too benign. So things like the bankruptcy judges setting mortgage terms and rates, the ACORN slush-fund spending, the union proxy for corporate boards, stricter limits on executive compensation, and much larger equity ownership of selling banks through warrants will all find itself back in the new bill. Of course, this scenario will lose more Republican votes. But insiders tell me President Bush will take Secretary Paulson’s advice and sign that kind of legislation."
Which stiffens my theory that Democrats engineered this whole collapse by way of inaction through 2006 until now so as to gain "control" of the banking industry by federalizing it. Make no mistake that is exactly what this bailout is intended to do. The 700+ point drop on Wall Street was nothing more than the market's "hissy fit" for not getting it's way.
I watched Fox, MSNBC, CNN tonight and without fail all of them screamed that the sky is falling and that if this bill isn't passed on Thursday at the next vote all is over. Let's not forget however that all the major news orgs are run by giant corporate conglomerates that have heavy investment in Wall Street so it's no doubt that their anchors are simply relaying the panic of their employers.
The market plunged, and might do so again tomorrow, but nevertheless the bailout isn't the right way to go. Keep up the pressure on our side of the house, the fact is that Larry is most likely right and democrats may just shove this thing through with all the earmarks and perks attached. But we have to stay firm on the GOP side.
So let the Democrats pass this mess and when it blows up - and it will down the road - they will not have the GOP to blame.