Bailout Fails — What Next?

by Sal on September 29, 2008

in Economy,Politics

The proposed $700 Billion Bailout failed to pass today, 207 for, 226 against.  In reaction, the DOW dropped 700+ points, before rallying again to around  a 300-point drop for the day, and is now bouncing between a 300 and 600 point drop.  As expected, the majority of conservatives opposed the bill (66 for, 132 against) but more surprisingly, the Democrats could not hold their own caucus together (146 for, 94 against). 

The question is, where to go from here.  I posted earlier today about how the private sector should be looked to as the solution to this problem.  Sure, there may be some short-term pain, but the government should do the following to help spur the economy out of this crisis. 

  • Provide an incentive for other companies to buy the troubled assets — no capital gains tax on profits resulting from these purchases, etc.
  • Suspend the Corporate Income Taxes and Capital Gains Taxes
  • Lower marginal tax rates immediately so that more people can afford housing and their mortgages. 
  • Increase liquidity by changing depreciation rules and accounting rules that do not make sense.
  • Suspend Sarbanes-Oxley, the regulatory mess that stemmed from earlier this decade, and is now costing companies. 

Pushing these pro-growth policies will help to soften the crisis and put America back on the competitive map long-term.  Congress should redraft a new bill with the above, and pass it.

UPDATE:  It appears that Speaker Nancy Pelosi’s vitrialic partisan speech before the vote contributed to its failure.  What leadership.

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Breaking:Bailout bill fails…Bitchlosi’s Words That Sealed Its Fate | Right Voices
September 29, 2008 at 4:21 pm

{ 5 comments… read them below or add one }

Ryan September 29, 2008 at 3:35 pm

Where’s the outrage about “questioning one’s patriotism” when a Democrat does it? San Fran Nan couldn’t get 94 Democrats in line and went on a tirade against Republicans.

I forgot, Madame Speaker, isn’t it the Democrats that have the majority? They don’t need a single Republican to pass anything. I hope Boehner jumps all over Pelosi’s reaction and articulates his position clearly and simply.


Lynn Wiley September 29, 2008 at 9:44 pm

The Dems got caught with their fingers in the cookie jar, and now they are whining because they have to face the music. This will all
come out to the public, and before election day and THEY KNOW IT! That is why they appear so hysterical. Citizens have had it with their
corrupt dealings and WE’RE NOT GOING TO TAKE IT ANYMORE! Now, every little detail will come out, and this problem will be solved by
making people responsible for their actions. We accept no less from our children, we DEMAND it from ‘supposedly’ responsible adults.


Effluent September 30, 2008 at 7:53 am

“San Fran Nan couldn’t get 94 Democrats in line and went on a tirade against Republicans.”

I also heard that she personally gave permission to some 16 politically vulnerable freshman House Democrats to vote “nay.”

Those 16 votes right there would have put the bill over the top.


Sal September 30, 2008 at 2:28 pm

Effluent, that figures. The Dems put politics first, before what is right. San Fran Nan could have snsured passage of this bill wtih her own caucus. The fact that she didn’t is the story here.


Ryan September 30, 2008 at 3:05 pm

Some even think that Pelosi needed Republicans to push this over the top to: 1) provide cover to some vulnerable Dems, and 2) make sure that Republican fingerprints were all over this highly unpopular bill to hit Republicans with this over the next five weeks. Since the bill lost, she decided to just blame everything on Republicans, when we all know that’s ridiculous.


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