You know, I noticed a very interesting phenomenon regarding this whole credit bailout bill thing in the House on Monday, and the failed vote. Take a look at who voted for and against it. The “no” votes, amazingly, came from both the far left and the far right. Congressmen from both parties were reporting being deluged with calls running massively against passing the bailout bill, and it didn’t matter whether their districts were liberal or conservative. Very liberal outlets (like Republic of Dogs, for example) were just as happy with this thing crashing and burning as very conservative ones (like Free Republic).
Now both sides are sitting back and working on their plans, which is as it should be. The Senate has what appears to be Bailout Bill Mk II lined up for a vote today, which looks like the House bill with some more stuff attached to it like a $100 billion package of tax credits and changes–a bill that may not make it through the House again even if it does pass the Senate tonight (which it probably will). The Republican Study Committee has their own insurance-based alternative and regulation reform package that they plan to introduce in the House. There was word last night that some Democrats who were opposed to Bailout Bill Mk I are working on their own alternative package, although I can’t find what’s in it.
This is how it’s supposed to work. Put alternatives out on the table, work through them, come up with something, or maybe even nothing and let the markets sort themselves out (what a concept, huh?). Not some big crazed ZOMGSAVEUSALL bumrush that hands Hank Paulson a $700 billion blank check to do what he wants with, without oversight. It should be noted that while credit is definitely tighter this week, the Dow made back the majority of Monday’s loss yesterday…and the “worst one-day loss in history” amounted to roughly 7% of the Dow’s amount, far less than the 20%+ single-day crash in 1987.
If nothing else, this week is notable for seeing Dennis Kucinich, Ron Paul, and Thaddeus McCotter all lined up on the same side of a vote. If that ain’t one for the ages, it’s pretty close.