House Approves Financial Bailout (Updated)
[Guest post by DRJ]
The House voted 263-171 to approve the bailout of the financial industry, but only after the Senate version added $110 billion in tax and spending provisions as well as “legislation mandating broader mental health coverage in the insurance industry.” The bill will be sent to President Bush and he will undoubtedly sign it.
I supported the bailout but I would have preferred the first version to pass. Only in Congress could expensive legislation be defeated because of cost, only to be replaced by a more expensive version. This is a classic example of Congress doing what it does best — spending taxpayers’ money.
UPDATE: The Houston Chronicle reports the bailout targets oil and gas companies:
“The legislation freezes the tax deduction oil and gas companies receive for their domestic manufacturing operations at 6 percent, while other American manufacturers will see that deduction rise to 9 percent in 2010. That provision will raise $4.9 billion over 10 years.”
This is one reason the Democratic leaders are so happy about the bill.
— DRJ
Mickey Kaus has already pointed out that the mental health “parity” provision is another CRA that will come back to bite us in a few years. Psychologists have been trying to get this since HMOs came along and hurt their business. Stuff like this is the reason California is trying to borrow 7 billion dollars right now.
Mike K (155601) — 10/3/2008 @ 12:09 pmAnd thus ends the free-market and capitalism…
Nicely done, Congress. Nicely done.
Scott Jacobs (a1c284) — 10/3/2008 @ 12:15 pmI just resigned from the GOP. Today is indignation day. I’m free, free at last.
Ropelight (1be620) — 10/3/2008 @ 1:24 pmWelcome to the great unwashed, Ropelight – I’ve been voting with my conscience for years now, free of any particular party ideology.
Dmac (e639cc) — 10/3/2008 @ 1:45 pmSome of us never joined. I serve notice to anyone who tries to label me — I am a conservative, not a Republican. To their credit, over 100 Republicans and 60 Dems voted against it.
Icy Truth (1468e4) — 10/3/2008 @ 1:46 pmLet loose the hounds of hell!
daleyrocks (d9ec17) — 10/3/2008 @ 1:57 pmLibertarians are prepping the pitchforks and torches…
Scott Jacobs (a1c284) — 10/3/2008 @ 2:08 pmPitchforks and torches are for peripatetic plebeians, I’m putting a point on my pilium and and a sharp edge on my gladius. I’ll join the 10th and I’ll stand by the blood of my clan.
Ropelight (1be620) — 10/3/2008 @ 4:47 pmI’ve updated the post.
DRJ (c953ab) — 10/3/2008 @ 5:46 pmGood Allah.
JD (f7900a) — 10/3/2008 @ 5:51 pmThis won’t encourage oil and gas companies to continue to invest in domestic manufacturing (production? pipelines? refining? plastics?). I predict the major oil companies will continue to divest their US interests and relocate overseas like Halliburton.
DRJ (c953ab) — 10/3/2008 @ 6:01 pmThis story by Labaton at NYT explains how the investment bank leverage ratios got out of hand:
gp (19ad5d) — 10/3/2008 @ 7:04 pmhttp://tinyurl.com/3r7kn9
So true. This is the beginning of the end.
Patricia (ee5c9d) — 10/3/2008 @ 11:08 pmSo we consumers are going to pay a total of $4.9 billion extra for gas over the next 10 years? Greeeeeeaaaaatttt.
PatHMV (885ff2) — 10/4/2008 @ 2:00 am