There are a lot of reasons to vote no on H.R. 3997 and you don't need any economic theory to figure out why. Go here to read this bullshit:
http://www.rules.house.gov/110/text/110_hr3997_amnd_samnd.pdf
Notice Section 104 on the so-called oversight board:
``SEC. 104. FINANCIAL STABILITY OVERSIGHT BOARD. 10 (a) ESTABLISHMENT.-There is established the Financial Stability
Oversight Board, which shall be responsible for- 13 (1) reviewing the exercise of authority under a 14 program developed in accordance with this Act, including- 16 (A) policies implemented by the Secretary 17 and the Office of Financial Stability created 18 under sections 101 and 102, including the appointment of financial
agents, the designation 20 of asset classes to be purchased, and plans for 21 the structure of vehicles used to purchase troubled assets; and 23 (B) the effect of such actions in assisting 24 American families in preserving home owner-
1 ship, stabilizing financial markets, and protecting taxpayers; 3 (2) making recommendations, as appropriate, to 4 the Secretary regarding use of the authority under 5 this Act; and 6 (3) reporting any suspected fraud, misrepresentation, or
malfeasance to the Special Inspector General for the
Troubled Assets Relief Program or the 9 Attorney General of the United States, consistent 10 with section 535(b) of title 28, United States Code. 11 (b) MEMBERSHIP.-The Financial Stability Oversight Board shall
be comprised of- 13 (1) the Chairman of the Board of Governors of 14 the Federal Reserve System; 15 (2) the Secretary; 16 (3) the Director of the Federal Housing Finance Agency; 18 (4) the Chairman of the Securities Exchange 19 Commission; and 20 (5) the Secretary of Housing and Urban Development...''
This is not oversight by Congress. It is oversight by the Executive Branch, and all Bush appointees. Going down further you find the same Poulson language about reporting to Congressional committees semi-annually. So most of the Dodd review wording is gone.
Reading between the lines, Poulson would not compromise his own imperial power, since he retains it with a few fellow lackies added. Fuck you. And that alone was good enough to vote no.
While the Congressional Republicans are getting blamed for the failure to pass the bill, it is the White House holding a gun to the Democratic leadership's head---get it through or get Depression---with lots of help from the financial markets on Wall Street. Poulson, the WH, and the stock market said, essentially we will ruin the whole economy before we give up our power.
This whole scenerio stinks.
Here are the vote tallies:
http://www.govtrack.us/congress/vote.xpd?vote=h2008-674
I don't care what the reason, I was cheered to see Barbara Lee was in the nay column. She is on the House Appropriations Committee and must have listened to endless bullshit about how `we' can't afford this or that help for low income households and so she just revolted.
After decades of listening to the Right and the neoliberal Democrat wizards about how pouring money into the top will eventually help the bottom, and now that the top is suddenly scared their casino chips are gone, what? Now suddenly we must do this for the `greater good?'
CG