Last Thursday I said the following as it relates to the bailout plan.
If, and this is a big if, the pricing in the market has hit an illiquid wall and the government's intent is to merely unclog the system, I do think there is some hope.
Hope was clearly not warranted at that point. It seems Congress wants the clog to fester.
US Congress rejects billion dollar rescue deal
In the US, House Republicans blamed a partisan speech by Speaker Nancy Pelosi, a Democrat, for the bill’s failure.
So let me get this straight. The contents of the bill were apparently acceptable, but the Democrat's speech wasn't? I didn't realize the speech was being voted on. I was under the assumption that speeches from the opposing party could generally be safely ignored. Shame on the Democrats for verbally poking the beast. Shame on the Republicans for being the beast.
Sticks and stones may break bones but words will hurt arrogant self-serving congressional elitist egos and quite possibly send our country into another Great Depression? Fantastic. How bad could it get?
US Treasury Secretary Hank Paulson went down on one knee at one point to plead with Democrats not to say anything to the media which would harm the chances of a deal.
That should be some indication.
It's just cover for the Dems. They could pass the bill on their own, if they wanted to do so. And Pelosi is a fool. If she wants bipartisan support for cover, then she needs to make an effort to court it. She is a disaster and needs to get the boot.
ReplyDeleteTeri,
ReplyDeleteAnd Pelosi is a fool.
It's the American way. We always hope for a greater fool to come along to save us from ourselves. I think that's why we elect them.
Congress is just a reflection of us. They will give themselves what they want and if we complain loudly enough they'll give us what we want too.
Unfortunately, we seem a bit confused on what we want. Do we want cheap goods or good jobs? Do we want less taxes or a stable currency?
We seem to want cheap goods AND good jobs AND less taxes AND a stable currency. Good luck on that one!
The miracle of the modern monetary printing press seemingly pulled it off for a while though.
Stag,
ReplyDeleteBernanke wants lower inflation too. At least I hope he does. And I'm almost certain he wants to lower housing inventory.
http://realestate.msn.com/Buying/Article_bankrate.aspx?cp-documentid=10749812
Fannie Mae has just increased the length of time it takes from the completion of a foreclosure sale until the borrower can get a new mortgage from four years to five years.
Whoa! That's not likely to increase demand and help reduce the supply of housing. And as for lowering inflation - I see a glut - of renters!