The Democrat-controlled House of Representatives, by failing to pass the bailout package, has done its best to wreck the economy. And, of course, the usual suspects are blaming (surprise!) the Republicans.
For anyone interested in an honest perspective on why it happened, however, Thomas Sowell explains that the people who now control Congress can never be expected to act responsibly in this crisis:
Nothing could more painfully demonstrate what is wrong with Congress than the current financial crisis. Among the congressional “leaders” invited to the White House to devise a bailout “solution” are the very people who have for years created the risks that have come home to roost.
And who would that be? How about the Democrat Chairman of the Financial Services Committee in the House:
Five years ago, Barney Frank vouched for the “soundness” of Fannie Mae and Freddie Mac and said “I do not see” any “possibility of serious financial losses to the Treasury.”
And the Democrat Chairman of the Senate Banking, Housing, and Urban Affairs Committee:
Earlier this year, Sen. Chris Dodd praised Fannie Mae and Freddie Mac for “riding to the rescue” when other financial institutions were cutting back on mortgage loans. He too said they “need to do more” to help subprime borrowers get better loans.
In other words the Democrats put morons in positions of serious responsibility. Predictably, they studiously ignored countless warnings that this was coming:
Gregory Mankiw, chairman of the Council of Economic Advisers, warned in February 2004 that expecting a government bailout if things go wrong “creates an incentive for a company to take on risk and enjoy the associated increase in return.”
And Mankiw by no means alone in sounding the alarm:
Alan Greenspan, then head of the Fed, made the same point in testifying before Congress in February 2004.
The first step in solving the current financial crisis is get rid of brain-dead idiots like Frank and Dodd. If the voters are crazy enough to put a Democrat in the White House, who knows how much damage these dopes will do.
Here’s an AmSpec piece explaining how the Dems scuttled the bailout package. They didn’t whip their caucus, and Pelosi deliberately antagonized the Republicans. These creeps obviously think a wrecked economy will help them in the election, the good of the country be damned.
Meanwhile President Bush, who tried to forestall this mess three years ago, will appeal to these irresponsible jackasses to (for once) put the country and their constituents before their own tawdry political agenda. Good luck with that!
In an apparent effort to prove that they can be just as dumb as progressives, lots of conservatives and libertarians advocate “letting it burn.” This particularly self-destructive strain of adolescent nihilism can be found at Riehl World View, Jules Crittenden, and Michelle Malkin. This is the precisely the kind of unthinking that brought us Smoot-Hawley.