Monday, September 29, 2008

And They Listened! (Maybe...)

Today the House defeated the bailout package, with a large number of defections from the Democratic leadership's official line. Republicans, too, refused to support President Bush in the matter.

The medicine is going to be bitter. Unemployment is going to continue to go up. There will be some panic movement of money on Wall Street. People tend to forget that Wall Street isn't significantly more intelligent that Main Street, and is prone to sheep-like behavior as much as the next mob. But if the government intervenes, it only sets the stage for the next bailout, plus it gives it more excuses to intervene where it has no business.

But probably, they will try again before the week is out, probably with enough pork and special favors to sway the swing voters.

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