Monday, September 29, 2008

Pelosi Tanks Her Own Bill

With many Republicans ready to vote Aye on HR 3997 (against their better judgement) some changed their mind at the last minute after a scathing speech by Speaker Nancy Pelosi, in which she laid the blame for the economic crisis squarely at the feet of Republicans led by President Bush. Thank you, Nancy!

Remember, Democrats have the majority. They can pass anything they want. Over 90 Democrats voted Nay. Apparently Pelosi failed miserably as a "community organizer" in her own House.

You can see Speaker Pelosi's speech here: .
Here is what McCain-Palin senior policy adviser Doug Holtz-Eakin had to say:

“From the minute John McCain suspended his campaign and arrived in Washington to address this crisis, he was attacked by the Democratic leadership: Senators Obama and Reid, Speaker Pelosi and others. Their partisan attacks were an effort to gain political advantage during a national economic crisis. By doing so, they put at risk the homes, livelihoods and savings of millions of American families.

“Barack Obama failed to lead, phoned it in, attacked John McCain, and refused to even say if he supported the final bill.

“Just before the vote, when the outcome was still in doubt, Speaker Pelosi gave a strongly worded partisan speech and poisoned the outcome.

“This bill failed because Barack Obama and the Democrats put politics ahead of country.”

For a roll call vote, go to this website:

The Republican leadership, from Minority Leader John Boehner to Senator John McCain, helped tremendously in making the bill far better than the original three pages submitted by Secretary Paulson, but in the end, conservatives in the House were not satisfied. They know that Americans deserve better, and then will now go back to work to get a bill that hopefully incorporates the following:

Increase the FDIC limits
Create additional federal insurance
Address the mark to market requirement

Thanks to Texas Congressmen who voted Nay:

Jeb Hensarling, Mike Conaway, Louie Gohmert, Sam Johnson, Ron Paul, Ted Poe, Ralph Hall, Joe Barton, John Culbertson, Michael McCaul, Mac Thornberry, Randy Neugebauer, Kenny Marchant, Michael Burgess, and John Carter.


Anonymous said...

What happened to Pete Sessions? He voted for the bill!

Denise McNamara said...

Yes, he did...there are going to be some unhappy constituents.

RichardM said...

Things haven't gone so badly since the bailout was voted down...what happened to Armageddon?

Jarrod Atkinson said...

The fundamental flaw with the bailout is that it's a bailout. Sure, they are creating yet another regulatory agency that has little oversight, which is bad, but we, as Republicans, need to remember that we are supposed to be the Party of the Free Market. The Market didn't cause this; the Fed did by creating money out of thin air, which flowed freely to the path of least resistance. Thanks to the fundamentally weak economy that began weakening in 2000 and has remained weak through today (ask anyone who has graduated from college in the last decade), the capital created by the Fed had nowhere to go but to housing. Beginning in 1998, home ownership has been disproportionately encouraged by Fannie, Freddie, and the IRS, causing the malinvestment we call a “Housing Bubble.” Economists have predicted this outcome since 2002 when we saw that the housing market was ramping up to ridiculous annualized growth rates, but the Fed could only watch on because their charter was only to manipulate the Fed Funds Market. Now that they’ve changed their own rules, they are buying Residential Mortgage Backed Securities and who knows what else, further encouraging malinvestment. The response to criticism that the Sessions’ Office is sending out cites N.I.N.J.A. loans as the cause of the faltering economy. OK, but the government encouraged the entire mortgage industry to offer, fund, and insure these loans.
And we can’t forget the Mark to Market Regulations, which is another example of how the government doesn’t know how to manipulate the financial markets effectively. Mark to Market seemed like a good idea at the time, which wasn’t all that long ago. Obviously, it was a bad idea.
Why is it that we want the government to fix the mess that they caused? People are scared and ignorant of the principles of economics. In basic economic classes, students learn that any time the government gets involved in the relationship between supply and demand, there is a dead weight loss to society. Socialist Economists like Paul Krugman basically suggest that the government is smarter than the market. I wholeheartedly disagree. People act in their own best interests because they are rational; a market for goods or services is comprised of many rational buyers and sellers who make decisions that allow them to arrive at a Pareto Optimal (mutually beneficial) outcome. When the government gets involved, the risk, the rules, and the ability to properly evaluate investment and consumption are permanently altered.
What’s the answer? Stronger banks have been stepping in to buy assets from weaker banks. Let that process continue. Promises of a bailout from the government only diminish the ability of banks to act in their own shareholders’ interests and seek profit. Let the financial system sink or swim. Some people will lose money, but such is life. The more we encourage the government to get involved, the worse off we all are.