House vote rejects financial bailout bill

I couldn’t listen to Pelosi’s speech before the vote, but there were sufficient representatives in the House chamber who couldn’t get off the floor, as easily as I could employ the remote, before hearing enough.

There apparently weren’t enough barf bags to go around.

In any case, Pelosi lost a dozen or so of the GOP votes she needed to pass the bill.

Later: The bailout bill is going to pass. I believe it must pass. My previously stated reason is that the U.S. government has established itself, via the Federal Reserve, as the central banker, and in a financial panic and liquidity crisis, it is the central banker’s role to quell the panic by providing liquidity. What makes this case extraordinary is the amount involved, which has forced the Fed to turn to Treasury and Treasury to turn to Congress.

As for what this bill will do, my motto is “those who don’t expect are never disappointed.” There is no telling how this will turn out until it turns out. There’s simply no way of knowing how an economy this huge, interwoven to the extent it is now into the world economy, will turn over as this goes forward.

This is not “nationalization,” it is not the “slippery slope to socialism.” If it is the latter, then that occurred when the Fed was established.

Do I think that the Democrats would, will, are trying to bag a socialist effect out of this? Of course they are. But the purpose of the bailout is to keep the financial system liquid, which is key to having a free market in the first place. This sort of financial panic routinely occurs in a market system, and for better or worse the Fed was created to deal with such a panic. This is a big one, as I noted, and thus the declension to Treasury and to the Congress.

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