Bailout Plan rejection
US Speaker of the House Nancy Pelosi. Photograph: Jim Young/Reuters
In an unexpected turn of events yesterday, the US House of Representatives rejected the proposed bailout plan. The immediate results were not good. The US stock-market saw its highest points drop in history. The fact that Fortis and Bradford & Bingley’s were nationalised, and that Citigroup bought Wachovia, did not make for a pretty backdrop.
The big question is what happens now? The rejection of the bailout plan reminds me of the Irish rejection of the Lisbon Treaty. Both political parties called on their members to vote for the plan. The President consistently supported it, as did both presidential candidates. And yet, it was rejected.
Some Republicans have blamed Nancy Pelosi’s speech for the outcome, but I don’t think that argument holds water. First of all, only 60% of democrats voted for the plan. I hardly think that the 40% who went the other way were offended by an ‘anti-Bush policy’ speech. As for the Republicans, I think Barney Frank put it best: the suggestion that some people voted against the best interests of the country because Pelosi hurt their feelings is ridiculous.
So what happens now? Probably the same thing that will likely happen to the Lisbon Treaty. The bill may get tweaked, but it will ultimately be passed. It will be sold as the only way to keep the country afloat, and alternatives will not be entertained. Both parties will try and accuse the other of having hampered progress and themselves as the champions of the people. And assuming Wall Street reacts strongly enough (I’m sure they will), they will get their way.
Is this bailout the best way to deal with the credit crunch? I have strong reservations. But I must concede, I would rather see it go through than have absolutely no action taken.




British foreign secretary David Miliband gives his keynote speech yesterday to delegates on the third day of the Labour party conference in Manchester. Photograph: Jeff J Mitchell/Getty Images
CAPE TOWN/SOUTH AFRICA, 4JUN08 - Thabo Mbeki, President of South Africa, captured during the Opening Plenary of the World Economic Forum on Africa 2008 in Cape Town, South Africa, June 4, 2008.Copyright
Turlough OSullivan, director general of the Irish Business and Employers Confederation
Robert Mugabe, centre, flanked by Morgan Tsvangirai, left, and Arthur Mutambara
Fr John Achebe

Leo Varadkar



