(Community Matters) It passed, though a lot uglier – special tax breaks and a whole lot of other provisions (including some good ones). It could have included more puntative equity kickers from those coming to the bailout window. Could have, would have, should have . . .
Will it work? No one knows. We only know what didn’t work in 1930, i.e., doing nothing to inject liquidity and restore confidence.
Our own Congressman Lloyd Doggett refused to support the bailout. As his comment to my blog – which I elevated to a separate posting further below – indicates, I had just the week prior written asking that he protect taxpayers by requiring equity participation in the form of stock or warrants as well as requiring oversight. Our Democratic Congressional leadership did a decent job at this. The administration’s first bill included no oversight or equity participation. The bill offered on the House floor included both as well as traunches of funding instead of the full $700B and foreclosure relief.
I’ve got to give Lloyd the benefit of the doubt. And, it’s certainly only fair to acknowledge Lloyd’s well-deserved track record as a fiscal conservative, individually and personally.
Yet, I can’t help the deja vu I feeling that he’s unwilling to stand up against populist opposition, whether or not in the better interest. The most pointed personal example his early refusal to stand up for gay/lesbian workplace nondiscrimination. He tried disguising that failure of courage behind a principle of not co-sponsoring legislation, though he did co-sponsor other bills.
The late Jake Pickle was one of five southern Democrats with the courage to vote for the 1964 civil rights legislation. It could have cost him his congressional seat, though it didn’t. While there are many reasons why I continue to support Lloyd Doggett, his courage and willingness to lead even in the face of populist opposition isn’t one of them.
Will the bailout work? Will taxpayer money be invested wisely? Will the Secretary of the Treasury negotiate as shrewdly as when he was chairman of Goldman Sachs? Will Congress exercise professional oversight rather than politic football? And, will mortgage holders seeking relief be subject to objective scrutiny to ensure they didn’t game the system? I don’t have a crystal ball but I am an optimist, and in times of crisis I believe individual Americans put forth their best. Regrettably, as we saw just after 9/11 and during the wars, some of corporate America behaves at its worst, pigs at the trough of public largess.


