Some plan will likely go through, but the rendition defeated today was really not much better than the original proposed last weekend. Yes, there were some minor improvements, but the single biggest was the oversight (from Mish):
Fox Oversees HenhouseThe bill sets up an oversight board, which is directed to “ensure that the policies implemented” by Mr. Paulson are proper. Mr. Paulson is to be one of the five members of the board watching over his own actions. He is joined by the chairman of the Federal Reserve, the chairman of the Securities and Exchange Commission, the Housing Secretary and the director of the Federal Home Finance Agency.
The oversight board would have consisted solely of executive branch personnel, with the exception of the "independent" Ben Bernanke. This is really unbelievable, I'm just glad that so many Republicans got caught playing politics that the bill was defeated. Voter angst was the key here.
Anyway, I'll try to post more on this tonight, but for now let's just say that this is far from over.
2 comments:
So now what? The administration and Congressional leadership keep threatening that a bailout (take your pick as to which one) is the only option. But so far, two have failed.
What is the *worst* that could happen if no bailout is orchestrated?
The worst thing that could possibly happen, from what I've read/heard around the office, is that some firms may not be able to meet their payroll. I'm pretty sure that would set off a panic - the panic in Charlotte is bad enough considering the gas situation (none to little right now, although the end is in sight), but that can be worked around. If people don't get their paychecks, well, that would be panic on a whole different scale. Jim has suggested to me (by email) other possible alternatives so that this does not happen that do not include the bailout.
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