The bailout bill died this morning in the House of Representatives. Rep. Barney Frank is blaming the Republicans for not supporting the measure though a lack of support could be found on both sides of the aisle.
Here’s the question to which I’d like an answer – and the answers I see seem to vary widely depending on who happens to be speaking.
Is this measure absolutely necessary? As the banking industry contracts to where there are a handful of large-scale national banks as well as some regional banks – banks that have not been impacted by the mortgage market because they didn’t get into the risky propositions their larger brethren such as WaMu and Wachovia and others did … is this a bad scenario? Isn’t this a sign of the free market correcting itself to some degree?
It’s nice that the federal government feels the need to jump in after years without any sense of regulation. It was nice hearing the presidential candidates talking about how long ago they first sensed the problem … TWO YEARS after the problem actually started.
The argument is the free market (a bit of a misnomer since there’s some regulation in place so free isn’t really totally free) can’t correct this mistake.
Maybe that’s the case. But do you trust the federal government, the same government that stood by as all this happened, to now be the savior with our tax dollars?
[tags]Phoenix real estate, bailout bill[/tags]