Monday, September 29, 2008
Clearly there are more voters on Main Street than Wall Street, and we all know that the first job of a Congressman in October is to make sure that he is a Congressman in January.
Regardless of whether "the package" was a good idea or not, it doesn't exactly paint the US political system in good light that an apparently palatable deal has been shot down (with defectors on both sides.)
Particularly heart-warming was the individual who rescinded their "yes" vote, taking the yes tally from 207 down to 206, once he saw that the deal was going to fail.
So the question now is....how low do equities have to go, and how many banks have to fail, before Main Street decides that bailing out Wall Street might not be such a bad idea, after all?
Barring a volte-face from the House, we may be about to find out....
UPDATE: Macro Man is shocked, shocked to see Democrats blame Republicans and Republicans blame Democrats for the failure of the bailout bill. The problem with modern democracy is that only professional politicians seem to want the job of governing....
(As an aside, how does Vikram "we only have $42 billion of downside on Wachovia" Pandit feel right now?)