Tuesday, September 30, 2008
First, let me applaud Congress for making one of the most monumental and important decisions they have ever collectively made. Their vote against the proposed legislation yesterday sent a extremely important message to the citizens of the United States, and the Bush Administration for that matter. And now, while you and I are being assaulted with statements that America’s economic future depends on the manifestation of some sort of immediate rescue plan our Representatives in Congress are taking the day off. In fact, just today President Bush said "for the financial security of every American Congress must act" (Video: Bush's warning). Yet today Congress observed a non-federal, religious holiday. This happens in the midst of the supposed “largest economic crisis” since the Great Depression. Their actions inadvertently give the impression to the public that this crisis may not be so grim after all. During an unprecedented time in our history when our future allegedly hangs in the balance I would normally feel better if Congress was in office writing legislation. However, I am more than pleased that they are at home doing what they normally do when they are in office; nothing. I am starting to get the impression that there may be no problem to begin with. After all the credit markets that are supposedly going to be frozen if we do not do something soon are the same credit companies that send me “pre-approved” applications by the mailbox full and continue to increase my credit limit without me even asking. I fully comprehend that when these companies have to write down a significant number of losses and have to leverage themselves to recoup money lost on defaulted loans that they are going to be extra cautious who they lend to next. But to insinuate that the credit markets will be “frozen” and that no profitable small business or responsible individual will be extended a line of credit ever again is ridiculous. Things are not going to be extraordinary in the future they are going to return to the “norms of the past before cheap money inflated asset values, undermined lending standards, and encouraged” excessive risk (10 Things That Will Change). After a record breaking drop in the Dow Jones Industrial Average yesterday (-777.68) due apparently to the denial of the rescue plan, the markets had an almost record breaking increase today (+485.21).
Some are now saying that the denial of the bill was really an attempt by the Republicans to distance them from the Bush Administration. By publicly denouncing this rescue plan they allow themselves the ability to later say that it was not them who spent our tax dollars to bailout Wall Street. Whatever the reason, a win is a win and we should take what we can get.