For now the taxpayer bail out of Wall Street has gone down in flames. 67% of House Republicans and 40% of House Democrats just said NO.
In a stunning vote that shocked the capital and worldwide markets, the House on Monday defeated a $700 billion emergency rescue for the nation's financial system, ignoring urgent warnings from President Bush and congressional leaders of both parties that the economy could nosedive without it.
Don't even think this is the end of it. They'll be back. Cue the hand wringing, we know it's bad but it is a necessary evil.
The big mistake in the necessary evil scenario is the belief that somehow we can avoid the pain by stealing 700 billion from Main Street (the taxpayers) to give to Wall Street. It will change nothing, the price will be paid by someone and I don’t want to be that someone.
It’s like pretending that
replacing a window that someone threw a brick through creates prosperity because
the glass company is hired to replace a window that shouldn’t have been broken
to begin with.
In reality, where you and I live, the homeowner is the loser. The vandal has transferred the
wealth from the homeowner to the glass company.
In today’s scenario the vandals at Treasury want to transfer prosperity from Main Street (meaning those of us who paid our mortgages) to Wall Street. Worse, Washington is who tossed the brick in the first place.
The bailout simply shifts the costs to people who did not incur them. It props up failing inefficient businesses. That capital could be used for productive purposes but instead, it'll buy worthless assets.
Whole thing here.