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The House of Representatives today narrowly defeated the $700B bailout plan by a vote of 205-228-1 (Yea, Nay, No Vote). Bravo. (Read more at http://online.wsj.com/article/SB122270285663785991.html).
House Republicans blamed Nancy Pelosi’s partisan speech given before the vote for the failure for the measure to pass (read more at http://blogs.wsj.com/washwire/2008/09/29/house-republicans-blame-pelosis-speech/).
While I believe that something needs to be done, I don’t necessarily agree that the proper way to go about this is to have American taxpayers save the companies that got us in to this mess from bankruptcy. Did they share their windfall profits with American taxpayers? No. But they sure do wish they could push off their losses on us.
And while I don’t really want to turn this political, those of you who know me know that I’m for smaller government, not sociallizing our “free market” economy.
I’m interested in your thoughts. Please discuss this in the comments section below.
Aaron Graves @ September 29, 2008
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Actually, it should be called the Fail-Out.
There was a rather good article on the Asia Times Online that sums it up much better than I can. So without further ado, here’s the link for the article: http://www.atimes.com/atimes/Global_Economy/JI23Dj06.html
Comments, as always, are welcome below.
Aaron Graves @ September 24, 2008
The Bush Administration has pushed forward a plan for a $700 Billion bailout plan that would allow the Federal Reserve to buy bad mortgage debt from US-based banks and Wall Street firms. And while many may think this is a good thing, I find myself on the fence – and here’s why: I’m afraid that if the government takes all this bad debt away, then the financiers will be too quick to forget what got them in this position, and 10 or maybe 15 years down the road we’ll be facing yet another financial crisis of an even greater magnitude. I understand what the Administration is saying inaction would cause for the worldwide financial markets, and I know that many Americans are struggling, but really – If the banks and brokerages can simply shed their bad debt and know that the Government is picking up the tab, what’s to stop them from doing the same later on?
Your thoughts are welcome below.
Aaron Graves @ September 20, 2008
The Federal Reserve has provided an $85 Billion, 2-year loan to American International Group to prevent its collapse. While this may sound good in principle, what does it say about our “free market” society? I’m interested to read your thoughts in this discussion.
Sound off below.
Aaron Graves @ September 17, 2008
I know I’m a bit late to the ballgame on writing about this, but hear me out anyways.
Mortgage giants Fannie Mae and Freddie Mac, quite possibly bordering on insolvency, have been seized by the US government. And it’s prompted thoughts from some that America is now more “socialist” than China, which has a completely free market housing system.
Sound off with your thoughts on the Fannie/Freddie rescue. Is this a good thing, or will it wind up costing already hurting American taxpayers even more come end of the year?
Aaron Graves @ September 9, 2008