Why Congress voted down the bail out plan

Good if very succinct analysis over at MyDD: overwhelmingly those in close races for their re-election voted against the bail out.

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  • Clegg's Candid Friend 29th Sep '08 - 11:58pm

    The Telegraph reports:
    “Vince Cable, Lib Dem Treasury spokesman, said he expected the FTSE to take a further tumble tomorrow on the back of the US rejection of the rescue plan”

    This man’s powers of prescience are truly remarkable! If only the rest of us could foresee the future with such clarity …

  • Yawn.

  • Clegg's Candid Friend 30th Sep '08 - 9:12am

    “If we accept your assurance (at faceless value) that you really are one of us”

    As I’ve pointed out to you a number of times, you don’t have to accept my assurance for anything – you can check with the site owners. Why do you keep pretending otherwise?

    As for my comment on Cable, it just amused me because it sounded like a statement of the blindingly obvious. Though, as of now, the FTSE is actually up …

  • David Heigham 30th Sep '08 - 11:32am

    Geffrey Payne

    The Paulson bail-out plan was deeply flawed. As presented, it was politcally naive, panicky and unintelligible. As rejected by Congress, it was barely workable, but far better considered.

    A number of other proposals on the table from academics look better focussed on the problem, more fully worked through, and lower cost to the US taxpayers. However, we will need a lot of luck to get one of these now. And the plan that Congress rejected could have been amanded after the election to improve it.

    I fear that we – and the Congressmen who voted against the plan – are going to really regret the rejection.


    See Vince Cable’s post above.

  • Let’s face it – the main reason it was rejected is because the whole House of Representatives is up for election in a few weeks time, and a large number of them didn’t want to be seen to be supporting the dodgy bankers. A few Republicans may also have voted against it simply to spite Pelosi – which is, quite simply, astounding and a clear lack of responsibility.

    Eventually something will get through – not because it’s great, but because it has to. The Republicans will realise eventually that the political and social cost of letting the banks go bust will be greater than the cost of the financing.

    By the way, Nick Clegg’s suggestion of all parties working together in the UK on this seems to be a good one – Vince for Chancellor next week, anybody?

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