The bail out was on. Then it was off to buy time for McCain. Then it was on b/c McCain and Obama left for the campaign debate. Then it was off because 95 Democrats, 40% of Dems in the House, were afraid of what a corporate bail out with no similar bail out to homeowners, small farmers, and college students (who are not even being considered as part of those wronged by predatory lending) would look like. An 135 Republicans also voted against it, some because of a “failure to provide incentives to banks” (ie more perks), some because they don’t think it is a good idea to bail out corporations with perks while their constituents are so angry about it (same for some Dems), etc. And so now the second attempt to pull off a bail out has tanked.
Wall Street and the Dow have taken a huge hit and speculation on which bank will collapse next is hitting the airwaves. Walkovia was bought out this am seconds before its collapse. And the Dow Jones is down more than 700 points.
At least one analyst, according to my conspiracy loving father, has said the whole thing was a plot to make the new government look incompetent. It was not supposed to happen until after the new government took office and it was assumed that the Dems would win at the time.
Others have argued that Congressmen and the Cabinet all have interest in banks and they have been making so much money, and will make even more with the bank buyouts going on, that this crisis is kind of like the health care crisis to them: completely irrelevant to their lived experience.
So what do you all think?
mignanelli co. 2008