Bailing Out, On Bush?
The question is, if the deal they are trying to broker is better for the taxpayer, instead of the hastily put together treasury deal, then who's it bad for politically? The Treasury deal was on life support two days ago, as conservatives in the House warned because of it's market implications. Add in the pet projects, pork, and other sweetners to get Democrats to buy off on it, and it had no chance. The only folks who didn't see that were.... Everyone.
What the House GOP leadership seems to be working on is a play that isn't politically expedient, but instead, one that's fiscally managable for the government, while still providing a safety net for Wall St. firms and banks.
They need to make sure they kill a few of their pet ideas that are trying to be slipped in if they want it to pass. Now isn't the time to demand that capital gains taxes be suspended, when you are putting the government on the hook for potentially hundreds of billions of dollars.
I think over the weekend we'll see a deal happen, and it won't be the one anyone envisioned when Paulson released his proposal a week ago. Hopefully, because of the House GOP it will be one that we can all live with a little better than anything that we've seen so far.