It’s official, according to the New York Times, the bailout proposition has been rejected by the House of Representatives. The Dow Jones just plunged more than 700 points and America is standing up for itself as the bastion of free market economics!
According to today’s New York Times, “supporters of the bailout proposal had argued that it was necessary to avoid a collapse of the economic system, a calamity that would drag down not just Wall Street investment houses but possibly the savings and portfolios of millions of Americans. Opponents said the bill was cobbled together in too much haste and might amount to throwing good money from taxpayers after bad investments from Wall Street gamblers.”
Ironically though many democrats have been up in arms about the Fed bailing out the financial industry with taxpayer dollars, the vote to decline the bill has been largely republican. The general view is that the economy must go through a shakeout however small or large, to allow itself to come back to a level of stability that will sustain new growth over the long term.
Even though the bailout plan promised relief in the short term, its sustainability over the long term has been seriously questioned by many. As House Representative, Steny Hoyer says, “When it comes to America’s economy, none of us is an island.” The last thing we need is more of a domino effect on the economy.
And long term sustainability is what we all crave in every sector of the economy. Will the rejection of the bailout plan actually champion our cause?
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