Congress Rejects Wall Street Bailout Plan

Yesterday, Congress rejected the $700 billion Wall Street bailout proposal, and I for one am thankful that the politicians are actually showing some will power and acting in the interests of the people instead of the Wall Street people. Dennis Kucinich once again brought that heat and put it down for  working and middle class Americans in his speech on the House floor.

The Bushies are proposing using $700 billion in taxpayer money to bailout the Wall Street CEOs who got us into this mess in the first place, effectively letting them off the hook with zero accountability for their terrible decisions and putting the burden on us, the people. Instead of talking about using tax payer dollars to bailout Wall Street as if that is the only option, why don’t we use that money to bailout the taxpayers themselves, by helping them pay off their mortgages?

I thought Mike Whitney’s analysis of the situation on CounterPunch was pretty dope and insightful. He states:

“The reason the system is exploding is because the various financial institutions have been allowed–via deregulation–to act as banks and create as much credit as they choose without a sufficient capital base. When one reads about massive deleveraging, this relates directly to the fact that under-capitalized businesses were operating with too much debt in relationship to their capital. That’s it in a nutshell; forget about the CDOs, the MBSs, the CDS and the whole alphabet soup of derivatives garbage. They were all inserted into the system so Wall Street landsharks could expand credit without supervision and balance trillions of dollars of debt on the back of a one dollar bill. This is why Paulson wants to suspend the rules which would bring credibility and trust back to the system. After all, that might impinge on Wall Street’s ability to enrich itself at the public’s expense.”

It is actually a block of very fired up Republican legislators, as well as progressive Dems like Kucinich and Oakland’s Barbara Lee, who pushed to defeat the bill. What’s even crazier to me is the fact that when I read all the analysis of the situation, I’ve been finding myself feeling the comments made by Republican legislators who voted in opposition to the plan way more than the lame ass Democrats like Nancy Pelosi who are calling for the parties to unite in passing it. For example, Darryl Issa, R-Riverside County, states that “This is a manufactured crisis…the administration already has the tools it needs to inject banks with capital, [which would be] every bit as effective as the bailout.”

We’re in for some crazy times, ya’ll. Brace yourselves.

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One response to “Congress Rejects Wall Street Bailout Plan

  1. Pingback: Bailout » Blog Archive » Congress Rejects Wall Street Bailout Plan

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