Lemmings or Leaders?

Whoops.  The bailout vote didn’t got as smoothly as some predicted.  The ‘blame’ appears to be bipartisan, in the sense that significant numbers of both Democrats and Republicans voted the bill down, but Nancy Pelosi’s anti-administration, anti-Republican rant certainly did not win any votes on the Republican side of the aisle, and likely lost enough to make the difference.

I haven’t discussed the bailout, primarily because I don’t know enough to make an informed decision.  Government bailouts are generally a Bad Thing™, but if the consequences of not making it happen are a second Great Depression, I think the legislators need to put on their big-girl panties and get it passed.  The problem is that the consequences are not clear.  Letting some institutions fail will cause some hardship, but would propping them up result in worse problems later?  I do not believe anyone really has any answers, but I accept honest opinions on both sides.  My personal opinion, not being privy to all of the facts, is that a mild, loan-based package to boost investor confidence, secured by the bad assets, would be a start.  If, and only if, that does not appear to be working would considering a more drastic solution be appropriate.

One thing I am sure of is that Sec. Paulson needs to look for another job.  Whether he is right or wrong on the bailout, it is his Chicken Little impersonation that has made this a ‘crisis’ which must be resolved immediately.  What the markets need more than anything is confidence, and a high-level administration official running around screaming that the sky is falling does not exactly inspire that confidence.  Love Bush or hate him, he has made some abysmal cabinet choices.

Bailout or no, and whatever the consequences may be, I think (as do others) that it is time for McCain to ride in on his white horse and save the day.  He needs to take a firm stand, offer a specific plan (or explain why no plan would be better), and make that happen by shining a spotlight on the idiotic, partisan antics of Pelosi and her ilk to make them do what is best for the country, not for themselves or the Democratic party.

In fact, whether he has a plan or not, I think McCain has no choice but to do everything he can to get some sort of resolution.  Without it, it makes the suspension of his campaign last week meaningless.