After looking at the bailout and the House votes, we can piece together what happened that made this pork-filled Senate version pass. The first thing I noticed is that 32 Democrats and 26 Republicans switched their votes (Roll Calls here and here). It’s difficult to match each name with a specific earmark, or explain their switch due to election competition in their respective districts. When in doubt though, follow the money.
It’s likely that some House members switched their votes because they feared not passing any bailout, some (Republicans) perhaps because they couldn’t take the media pressure blaming them for the original bailout’s failure, some because of earmarks, and some because they know that government will likely expand further into the control of mortgages and the economy because of this bill.
To illustrate this last point, Jesse Jackson (D-IL) was one of the Democrats who changed his vote. Jackson said the original bailout didn’t do enough, though we know what that really means. His chief of staff told CNN that he was switching his vote because Obama promised to use the government to stabilize the housing market. In other words, Jackson was willing to vote for the bailout because he expects corrupt housing business as usual. I suspect several Democrats switched their votes because of this kind of assurance. The plug for Obama is a joke either because Obama didn’t do anything, or because Obama really has the arrogance to make such a promise when we know how he’s benefited from this government-sponsored housing practice.
Another frustrating story coming from Congress, and even economy gurus like Warren Buffett, is that the bailout package is likely to be insufficient, and others may follow. Governor Schwarzengger has already requested a state bailout from the Feds for California. The worst may be yet to come. In the meantime, it’s important to understand what kind of leadership we’re getting from Washington, and why this bailout bill passed with so much pork.
