Still working on Andrew Ross Sorkin's TBTF (in my defense, I'm also reading 3 other books plus I probably have ADD plus I'm very lazy). I was reminded of the juicy TARP bill failure incident on September 29, 2008. This is the Pelosi speech that so infuriated the Republicans that quite a few changed their vote and caused the TARP bill to fail when it was first put up for a vote in Congress:
They claim to be free market advocates, when it's really an anything-goes mentality. No regulation, no supervision, no discipline. And if you fail, you will have a golden parachute, and the taxpayer will bail you out... The party is over in that respect. Democrats believe in a free market. We know that it can create jobs, it can create wealth, it can create many good things in our economy. But in this case, in its unbridled form, as encouraged, supported, by the Republicans - some in the Republican party, not all - it has created not jobs, not capital; it has created chaos.
The bill was then defeated 228 to 205 and the Dow cratered by 777 points, the biggest one-day point drop ever. It passed a few days later though, in part because the congressmen got scared witless by the market reaction (and also thanks to the addition of some serious pork to the bill).
By the way, how wrong was Speaker Pelosi about the bailout party being over?
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