Monday, September 29, 2008

Stunning Reversal: Bailout Fails in House 228-205

Wow. Is the Office of Financial Stability (OFS) doomed to go into the History Books as the League of Nations? The savior that almost was?

There is no such thing as a “sure thing.” Maybe I should delay calling the US Financial System, the USSR Financial System, Comrade. In a truly stunning turn of events, the House of Representatives said “No,” to the largest bailout-spending bill in the history of the United States. (Yea. Sort of.)

While I do not have the citations, I “heard” on talk radio that House emails were running many multiples of “no,” to “yes.” It may be that the “folks at home” in the House Districts got to the House Representatives merely five (5) weeks before the election. Remember, Constitutionally, the House holds the purse strings and its members have to stand for election every cycle. Theoretically, the House is the most accountable.

What a mess. Everything we have written for the last two weeks is now on the electron room cutting floor. The all but assured emergence of the OFS looks somewhat unstable.

I do not put it past the powers that be in Washington to reconvene and put this “bad boy” to another vote. If not, be prepared to sell some “apples,” in your banker’s suit. The equities are going to take a steep ride down before they level off. So far, the DOW tanked 777 points (7%) today.

Hugh Wood, Atlanta, Georgia

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