"Africa is, indeed, coming into fashion." - Horace Walpole (1774)


bipartisan cooperation

The House of Representatives just rejected the $700 billion bailout plan for the financial industry. Guess what happened to your stocks since lunch?

I don't know what to think. There's something about this whole we-need-the-money-so-trust-us thing that doesn't smell right, especially with this administration. Learning that the $700 billion figure was picked because they just needed a really big number wasn't comforting. And I don't really trust the Secretary of the Treasury, quite frankly. As he's a former Goldman Sachs executive, I'm sure he knows what he's doing. Which isn't entirely a good thing.

The intersting thing is that the bill was brought down by the combined votes of very liberal and very conservative representatives. More Republicans than Democrats voted against the measure that would have propped up some of the Republican party's staunchest supporters and donors. That's bipartisan cooperation for you, even if they're now all busy blaming each other.

A colleague and I were joking a few minutes ago that it seems like there's finally an advantage to being graduate students with no assets, but as Committee Member #3, who's less than five years from retirement, pointed out, it's not funny at all for those whose retirement accounts are up in the air. And that's the problem: something has to give, but letting the foxes write their own legislation isn't a very trustworthy solution.


Blogger UPennBen said...

Representatives not running for re-election overwhelmingly supported the bill, and those in very tight races mostly voted against it. Surprise surprise.

Personally, I think Cindy McCain should put the bailout on her credit card.

Monday, September 29, 2008 3:26:00 PM

OpenID katemcdonald said...

Its disgusting isn't it?

Monday, September 29, 2008 3:29:00 PM

Blogger texasinafrica said...

Hey, Ben, they're all up for re-election. The numbers I saw showed a fairly even split for Reps who are in safe seats, but almost all those who are in tight races voted against it.

Monday, September 29, 2008 3:53:00 PM

Blogger UPennBen said...

There are 26 congressmen (mostly GOP) not running for re-election this year. 23 voted for, 2 against, and 1 abstention.

Monday, September 29, 2008 3:58:00 PM

Blogger texasinafrica said...

Ah, got it. Sorry.

Monday, September 29, 2008 4:26:00 PM

Blogger CharlieMac said...

I guess I'm still just a Aggie, but I really do not feel responsible for failure of institutions who loaned money to people not qualified to pay it back to purchase houses they could not afford. Why should my tax burden, if averaged out, be increased by $3,500.00.
Apply the same principals applied in the Enron case. Send the CEO's who cooked the books to prison and allow the institutions to fail or at least cut back.
Asi es la vida.
Where does it stop once we start bailing companies out? GM, Crysler, Ford and most of the large airlines are just as unstable. How far down does the bailout reach? How much does a businesses have to owe to qualify for a bailout by the taxpayer?
Best solution: Allow the individual loans to default, thus automatically reducing Fannie and Freddy, go back to practicing safe business practices in loaning monies, and allow the markets to level out. That is how capitalism
is supposed to work.
Socialism on the other hand is government running and controlling every thing.
Sure it would hurt for awhile, but this bailout only postpones the crash for a little while.
Charlie Mac

Monday, September 29, 2008 7:37:00 PM


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