When Congress failed to pass the bailout plan today stocks plunged, spiraling the Dow Jones industrials down almost 780 points for the largest one-day point drop ever.
Why did the bill fail?
Because House Republicans wouldn't back it.
And because Democrat leaders couldn't get enough House Democrats to back it.
The Democrats blame House Republicans for it not passing, but they could have passed it on their own without the Republicans, but 95 Democrats voted aginst it, including 12 on Barney Frank's committee! So much for who's to blame.
Why didn't the Republicans back it? Minority Leader John Boehner said, "Americans are angry, and so are my colleagues. They don't want to have to vote for a bill like this..." See transcript of their comments following the failed vote here.
Democrats are blaming Republicans, George Bush and John McCain, for the crisis but truth be known:
-Democrats were the ones who opened the door to the current crisis, and refused to do anything the signs pointing to 'trouble ahead'.
SEE:John Snow, Treasury Secretary at the time called for regulations and supervision of GSEs. He said in September 2003 "We need a strong world-class regulatory agency to oversee the prudential operations of the GSEs and the safety and the soundness of their financial activities." Snow was pushed back from this position, by then ranking member, but the eventual Chairman of the Senate Banking Committee, Barney Frank (D) from Massachusetts. Frank denied there was any problem and was quoted as saying, "Fannie Mae and Freddie Mac are not in crisis." In fact, Barney Frank was encouraging the government to do more to get low income families into homes. "The more people, in my judgment, exaggerate the threat of safety and soundness, the more people conjure up the potential for serious financial losses.... [a problem] I do not see. We see entities that are fundamentally sound financially and would stand some of the disastrous scenarios. But, even if there were a problem the government wont bails them out. The more pressure we see there then there is less, I think, we see in terms of affordable housing."
-George Bush warned Congress many times about his concerns re Freddie and Fannie.
SEE:In 2003, the White House upgraded the warning on real estate mortgage loans. Their experts said that the way loans were being handled could spread beyond the housing sector. In fall of 2003 the Bush Administration was pushing congress hard to create a new federal agency that would monitor and supervise Fannie Mae and Freddie Mac.
-John McCain has been warning about the potential dangers of the current set up with Freddie and Fannie, et al for over two years.
SEE:Senator John McCain co-sponsored legislation pushing for regulation of GSEs like Freddie and Fannie. In a speech on the senate floor, McCain said, "For years I have been concerned about the regulatory structure that governs Fannie Mae and Freddie Mac.... and the sheer magnitude of these companies and the role they play in the housing market... the GSEs need to be reformed without delay."
SEE more on McCain warnings.
The liberals are criticizing John McCain for suspending his campaign to come to D.C. to deal with the crisis, and some conservative media are buying into it.
but truth be known:
-Harry Reid said if John McCain doesn't come and vote for the plan the democrats won't vote for it at all. So McCain came, met with his colleagues, and sided with the House Republicans. But the Democrats politicized his being there to make him look bad, with Barney Frank even saying, "Now that Sen. McCain is safely in Mississippi (at the debate) we can get back to serious work."
We've got to read between the lines, and follow the truth, which often means following the money. Chris Dodd and Barak Obama received the most in financial backing from ACORN than any other candidates, one of the organizations the Democrats put in the bailout bill to receive 20% of the $700 billion package. ACORN is a housing organization responsible for much of the current failed housing situation. Barack Obama was not only their lawyer, but as Michelle Malkin points out, Obama hid an $800,000 payment to ACORN through "Citizen Services, Inc."
There's just too much spin and too many lies being spouted by the liberals in Congress and in the media. I hate the blame game. I hate the spin. But I hate the lies the most.