William Greider on the bailout of Wall Street Greed:
All of the political leaders blessed the deal, but the House of Representatives spit it out anyway. The Wall Street bailout is so odious to public opinion, the “people’s house” rejected it today, 228-205. The fever chart in Wall Street–better known as the stock market–swooned instantly, with the Dow falling 700 points. The political bedlam in Washington is as real as it gets.
The party leaders will probably try again. I doubt they have the energy or courage to renegotiate the terms in any serious way. A majority of Democrats voted for the measure, but most Republicans took a walk. They will be scolded–and pounded by captains of industry and finance–for being “irresponsible.” But I doubt the public will agree.
In all of elected Washington, representatives are closest to the people and they know a vote for this outrageous measure is going to end the careers of some colleagues–maybe many of them. This time, the dissenters can claim principle and say they are voting with the folks, while also voting to save their own hides.
It adds another deep shock to the system, both in politics and economics, but what an invigorating moment for democracy.[From Henry Paulson’s Deal]
If the situation was so dire, why did the markets recover on Tuesday?
And of course, the money spigot rules both parties:
Republicans, as usual, are playing their own political game–trying to evade the blame, now and later. Their proposal for an insurance program that financial firms must pay for is ludicrous. It’s like trying to buy hurricane insurance on your house after the storm has already blown it away. But the GOP already is in ruin, so its members are thinking long-term survival and creating a predicate for revival. Blame the government, blame Wall Street, blame the go-along Democrats–maybe people will start liking Republicans again.
Democrats are still in recovery from twenty-five years of deferring impotently to the wise men of Wall Street and retreating tactically from conservative initiatives. I see this crisis as the Democrats’ hesitant first step toward rediscovering their nerve and abandoned convictions. They are not there yet. But this crisis is not over. I predict they will get another opportunity to stand up for something and rather soon.