UPDATE: Looks like they are voting anyway and at last check, the House is all but set to vote the deal down. Hold on to your seatbelts, folks.
So, the word just came down that the Senate will not vote on the bailout package until Wednesday night. House Republicans should refuse to vote on the deal until the ballots are cast in the Senate. And Nancy Pelosi and Harry Reid should be ashamed of themselves.
Really, I had intended to write up a review of the progress made in the negotiations over the weekend, but it is just astonishing to me that we have not had votes in both Houses first thing this morning, and as the Democrats run the place, this is entirely their fault.
You may or may not agree that the bailout bill is necessary, but the Democratic leadership in Congress is supporting this bill on the publicly avowed theory that it is. And the reason why it is perceived as necessary is to shore up confidence in fast-paced credit markets. Yet not only did we have dithering last week driven by Democratic efforts to turn the bill into a Christmas tree of special interest favors like earmarked handouts to left-wing groups like Barack Obama’s friends at ACORN and unrelated corporate governance provisions for the whole economy, but now the Democrats seem in no hurry to bring the bill to a vote.
I know it’s hard to get this all written down and digested. (Which, by the way, is one reason all the extras should never have been piled on). But Members of Congress get paid to make decisions. They had all weekend and then some to evaluate the basic merits of the Paulson bailout plan. And every day, every hour that there’s no deal, there are additional financial institution failures, further tightening in the credit markets, and uncertainty-driven losses in the stock market.
The reason why the Democrats want delay is extraordinarily simple: electoral politics. Economic uncertainty always plays against the party in the White House. The polls over the last week bear this out. Every day the agony is prolonged and more people lose money, it benefits Obama.
And of course we saw the contrasting reactions last week in the presidential race: John McCain dropped everything to go to Washington and help Republicans battle back, successfully, against all the Democratic add-ons (John Boehner: “if it were not for John McCain supporting me at the White House when I said whoa, whoa, time-out, they would have run over me like a freight train.”), while nobody asked for Obama’s help and he had no discernible impact on the negotiations. As a result of his decision to take action, McCain ends up more dependent on getting things actually done and delivering, a dynamic that’s wholly alien to Obama, who has no experience with needing to get results.
Personally, unhappy as I am with the turn of events that brought the market to this point, I support the bailout. But House Republicans shouldn’t let themselves get used to provide political cover for an emergency rescue operation if the Senate’s just going to sit on it for another two and a half business days. They should refuse to play along with this effort and should not participate in any vote that doesn’t include a simultaneous Senate vote.