William Greider: It's another deep shock to the system--but an invigorating moment for democracy.

[marmar]

from The Nation:




Political Turmoil as House Rejects Bailout
By William Greider

September 29, 2008



All of the political leaders blessed the deal, but the House of Representatives spit it out anyway. The Wall Street bailout is so odious to public opinion, the "people's house" rejected it today, 228-205. The fever chart in Wall Street--better known as the stock market--swooned instantly, with the Dow falling 700 points. The political bedlam in Washington is as real as it gets.

The party leaders will probably try again. I doubt they have the energy or courage to renegotiate the terms in any serious way. A majority of Democrats voted for the measure, but most Republicans took a walk. They will be scolded--and pounded by captains of industry and finance--for being "irresponsible." But I doubt the public will agree.

In all of elected Washington, representatives are closest to the people and they know a vote for this outrageous measure is going to end the careers of some colleagues--maybe many of them. This time, the dissenters can claim principle and say they are voting with the folks, while also voting to save their own hides.

It adds another deep shock to the system, both in politics and economics, but what an invigorating moment for democracy.

The financial bloodbath will continue, but unless the deal on the table changes significantly, Henry Paulson gets to decide who lives and who dies. The former investment banker from Goldman Sachs would be empowered as treasury secretary to play savior or grim reaper, the liquidator who essentially pulls the plug on some banks and financial firms or the man who rescues them from ruin. Of course, Paulson would consult with other government officials. But you can be sure that, behind closed doors, he will ask former brethren in Wall Street to help decide which club members are worthy of saving. This power to pick winners and losers would remain in Paulson's hands until a new president arrives in January. ......(more)

The complete piece is at: http://www.thenation.com/doc/20081013/greider3

[babylonsister]

1. Isn't Greider the doom and gloom guy? Now it's invigorating?

OK, that's a nice attitude adjustment. ;)

[Venceremos]

2. Henry Paulson should resign

eom

[Va Lefty]

3. I'll believe Gredier before I believe Paulson or W

[greyghost]

4. Bingo!