We here at the home office are a bit surprised. I myself was betting that a little GOP establishment arm-twisting and McCainiac-type pressure would convince House Republicans to vote for it in exchange for a few face-saving technical "reforms" or some such malarkey. Pleasantly, I was proved wrong.
However, at the risk of looking like I'm crapping all over the parade of every libertarian and anarchist who saw this proposed scheme of highway robbery exactly for what it was, I wouldn't be breaking out the champagne just yet. One should bear in mind the following:
First of all, it's always possible for the congress to come up with an entirely new bailout bill that may be spun a certain way to conceal the fact that it is even worse than the bill that was defeated today.
Secondly, remember that the Federal Reserve has already displayed some pretty brazen behavior by lending newly inflated credit directly to the corporate insurance behemoth AIG in exchange for an 80% stake. So even if the congress doesn't agree on a new bailout bill, it shouldn't be surprising to anyone if the central banksters decide to create even more credit out of thin air in order to save the behinds of their Wall Street buddies. All of which, of course, would most likely result in the same massive price inflation that the proposed bailout bill would have caused.
And finally, let's also remember that there's already been a massive amount of monetary inflation undertaken in order to not only bail out AIG, but also those bastions of economic fascism, Fannie Mae and Freddie Mac. This after the Fed had injected newly created credit directly into some of the largest commercial and investment banks around.
So even though we should welcome the defeat of today's bailout bill, as (so far, anyway) this means that we will have been saved from even further inflationary robbery than we otherwise would have been subjected to, the fact is that we've been robbed plenty enough as it is. Just how much poorer this latest cycle of accelerated theft and plunder by the state has left the rest of us will be made ever clearer in the months and years ahead as prices continue to climb and eat away our savings. (What little is left of our savings, anyway.)
The fact that so many of us are so relieved that it appears--at least for the moment--that we've been mugged by the state only so much should make clear to us the root of our condition and the ultimate route to our liberation.
ADDENDUM: With the ink barely dry on this post, there's this from Bloomberg:
The Federal Reserve will pump an additional $630 billion into the global financial system, flooding banks with cash to alleviate the worst banking crisis since the Great Depression.(Nod to Anthony Gregory.)
The Fed increased its existing currency swaps with foreign central banks by $330 billion to $620 billion to make more dollars available worldwide. The Term Auction Facility, the Fed's emergency loan program, will expand by $300 billion to $450 billion. The European Central Bank, the Bank of England and the Bank of Japan are among the participating authorities.
The Fed's expansion of liquidity, the biggest since credit markets seized up last year, came hours before the U.S. House of Representatives rejected a $700 billion bailout for the financial industry...