The $700 Billion bailout package failed in the House today, sparking the largest single-day DOW point loss: 778.
Many GOP holdouts held fast to their refusal to socialize our system. I have to admire them for this principled stand, and I confess my philosophical side thinks along the same lines, perhaps worded differently: Live by the market, Die by the market.
If deregulation and unfettered greed with no oversight caused this, and people profited from it, then the greed sometimes gets rewarded with consequences like this.
Part of me feels revulsion at the very idea of bailing out the greedy SOBs - which on a superficial level reminds me of the stereotypical rich kid whose actions might hurt others but will never be punished because, hey, what are mom and dad for except to clean up the mess for him?
And yet, I obviously have to acknowledge the practical implications. Which is worse - bailing out, or not bailing out? Here’s an interesting quote, from GOP Representative Jeb Hensarling:
You were being asked to choose between financial meltdown on the one hand and taxpayer bankruptcy and the road to socialism on the other and you were told do it in 24 hours.
For sure, dude, for sure. I can’t imagine the pressure our Deciders are under right now.
So, since I don’t have any brilliant answers for anyone at this time, just for fun I’ll just offer up some of the interesting comments I’ve been seeing around the Interwebs this afternoon.
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Conspiracy Theory #1: The Congress isn’t too disappointed about the bailout’s failure to pass.
This theory claims that Congress isn’t actually too upset that the bill failed. Once the market crashes, they figure, Americans will be clamoring for a bailout the stem the flow, and Congress will be able to do whatever the hell they want, without fear of pissing off all their respective constituents.
Ok, this is only a conspiracy theory if we assume this was the sinister plan all along. Otherwise it’s just a prediction about what’s next based on an outcome.
I award this theory only half of one Stuperb Tin Foil Uber Hat (STFU hat). It’s just not crazy enough for a full STFU hat.
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Conspiracy Theory #2: Martial Law.
For a while now, the far lefties have been abuzz about a super secret executive order that gives President Bush the authority to declare martial law under very general conditions he can call a “national crisis.”
This, combined with the knowledge that a number of troops will be called home from Iraq to serve here to provide homeland defense, and that these troops go into action on October 1, has the same lefties looking very suspiciously at the timing of the crisis and the failed bailout. Conspiracy theorists think the national economic crisis will provide the conditions Bush needs to declare martial law, suspend elections and habeus corpus (further), deploy troops to keep us under his thumb, and rule foreverandevergodhelpus.
So, my gut reaction to this theory is to giggle a bit. But to be fair: it’s ninety percent a “look at the loonies” kind of a giggle, and maybe ten percent a nervous, uneasy giggle.
Ok, now this theory gets a full 2 STFU hats because it combines several elements to make a more stuperbly compelling theory.
Conspiracy Theory #3: The bailout was the conspiracy, and the members of Congress who voted it down saved us from what would have been the greatest kleptolegistation in human history. If this current crisis is allowed to unwind naturally, the net result is that a small number of extremely wealthy people will lost a great deal of wealth, but wealth that is inherently fraudulent because it is backed by insolvent debt. The bailout, if it were to take place, would have allowed these individuals to replace their fraudulent wealth with actual US dollars. How do you launder $700 billion dollars of fraudulent assets?
Reply to CK1. Put one of your guys in charge of the US Treasury.
2. Enact legislation to transfer money from the US Treasury to the rest of your coterie.
3. Profit!
CK, You are so dead right on this that it didn’t even occur to me to suggest this as a wacky conspiracy theory.
I can’t decide whether it gets zero STFU hats (because it’s probably true) or FIVE (because it’s so crazy that they’ve been able to do this right under our noses).
Reply to stuperb[...] For a while now, the far lefties have been abuzz about a super secret executive order that gives President Bush the authority to declare martial law under very general conditions he can call a “national crisis.” …[Continue Reading] [...]
[...] Here’s an interesting quote, from GOP Representative Jeb Hensarling :. You were being asked to choose between financial meltdown on the one hand and taxpayer bankruptcy and the road to socialism on the other and you were told do it in 24 …[Continue Reading] [...]